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Buffalo manufactures 3 types of baby strollers: Lite, Elite, and Polite. The current information on sales and cost structure for the three products are as
Buffalo manufactures 3 types of baby strollers: Lite, Elite, and Polite. The current information on sales and cost structure for the three products are as follows: Lite Elite Polite Unit Selling Price $111 $166 $244 Unit Variable Cost 51 111 124 The sales mix ratio for the three models is 5:3:2 for Lite, Elite and Polite. Buffalo's fixed costs for the year are $559,770. (a) Your answer is correct. Calculate the unit contribution margin for each model of stroller. Lite Elite Polite $ 60 $ 55 $ 120 Contribution margin e Textbook and Media Attempts: 1 of 3 used (b) Your answer is incorrect. Assuming that the sales mix remains constant, calculate the contribution margin for the composite. $ Contribution margin for the composite ( (c) What is the breakeven in units for each model of stroller? Lite Elite Polite Sales in unit to breakeven e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (d). If Buffalo sets its income before taxes $234,060, how many units of each model of stroller should be sold to achieve its target? Lite Elite Polite Units to be sold e Textbook and Media Save for Later Attempts: 0 of 3 used Submit
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