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3 Brad Sherwood Corporation sells two types of computers: one is designed for audio other for video applications. The company has provided the following information
3 Brad Sherwood Corporation sells two types of computers: one is designed for audio other for video applications. The company has provided the following information Total fixed costs $ 300,125 4 5 Per-unit data on the two products is presented blow: 7 8 $ 9 10 1 2 Unit data Selling price Variable costs Contribution margin Sales mix Audio computer Video computer 1,500 $ 1,750 1,100 1,200 400 550 75% 25% Weighted contribution margin (0.5 marks each) Required: Calculate the following: a) Total weighted average contribution margin (1 mark) b) Break-even point in units for the company as a whole (1 mark) 18 79 20 c) How many of each type of computer will be sold at the breakeven point? (1 mark each) Audio computer 21 Video computer 22 3 d) Will breakeven point stay the same if sales mix changes? Why or why not? (2 marks)
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