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A spa offers three membership programs platinum,gold and silver. The spa incurs annual fixed costs of $19,200,000. Platinum Gold Silver Memberships sold 30,000 150,000 120,000

A spa offers three membership programs platinum,gold and silver. The spa incurs annual fixed costs of $19,200,000.

Platinum Gold Silver

Memberships sold 30,000 150,000 120,000

Membership price 2,500 1,000 800

Variable cost per membership 1,000 500 200

  1. What is the weighted average unit contribution margin?
  2. Assuming the sales of mix memberships remains constant, what is the total number of memberships that the company must sell to break even?
  3. What is the break even point (in memberships) for the gold company?

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