7T-7,8

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Second Set of questions

Drake, Inc., which has fixed costs of $1,814,400, sells three products whose sales price, variable cost per unit, and percentage of sales units are presented in the table below. Sales Price Variable Cost Sales Mix Product A Product B $8.00 $28.00 $4.00 $11.00 408 50% Product c $105.00 $ 44.00 100 a. What is the weighted average unit contribution margin? (Round final answers to two decimal places.) Unit Contribution Margin b. At the break-even point, how many units of Product A must be sold? (Do not round intermediate calculations.) Number of Units Sold c. To make a profit of $1,451,520, how many units of Product B must be sold? (Do not round intermediate calculations.) Number of Units Sold Boise Corp had a margin of safety of $384.000 last month, with sales revenue of $1,190,000 and fixed costs of $338,520. a. What are break-even sales? Break-Even Sales b. What is the contribution margin ratio? Contribution Margin Ratio c. How much profit did Boise earn last month? Profit Earned d. How much would sales have to increase for Boise to earn profit of $556,920? Increase in Sales