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ABC Builders Inc. produces three products: A, B, and C. The following information is presented for the three products: A B C Selling price per
ABC Builders Inc. produces three products: A, B, and C. The following information is presented for the three products:
A
B
C
Selling price per unit
$40
$34
$20
Variable cost per unit
$25
$20
$6
Total fixed costs are $321,000.
Required:
Calculate the contribution margin for each product
Calculate the break-even point in units of the three products A, B, and C combination if the sales mix is 1 unit of A, 2 units of B, and 2 units of C. (i.e., 20% of sales are from A and 40% of sales are from B and the other 40% are from C).
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