Accounting Assignment

Hi-Tech Incorporated produces two different products with the following monthly data:

	Cell	GPS	Total
Selling price per unit	100	400
Variable cost per unit	40	240
Expected unit sales	21,000	9,000	30,000
Sales mix	70%	30%	100%
Fixed costs			$ 1,800,000

Assume the sales mix remains the same at all levels of sales.

Required:

a. Calculate the weighted average contribution margin per unit.

b. How many units in total must be sold to break even?

c. How many units of each product must be sold to break even?

d. How many units in total must be sold to earn a monthly profit of $180,000?

e. How many units of each product must be sold to earn a monthly profit of $180,000?