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Calculating CVP Multiple Product Starting from January 1, 2024 Large Mud Pillow Limited will introduce two new products. The key financial information related to these
Calculating CVP Multiple Product Starting from January 1, 2024 Large Mud Pillow Limited will introduce two new products. The key financial information related to these products are as follows: Activity Selling Price Direct Material (per unit) Direct Labour (per unit) Variable Manufacturing Overhead (per unit) Variable Selling Expense (per unit) Fixed Manufacturing Overhead (total) Fixed Administrative Overhead (total) Fixed Marketing (total) Donut Pillow $78.90 $10.01 $4.50 $8.73 $2.98 $121,580,000 $72.220,000 $92,600,000 Duck Blankets $146.90 $15.11 $6.50 $12.73 $9.98 $166,980,000 $255,780,000 $95,550,000 Feet Warmers $181.15 $5.11 $6.50 $2.73 $4.98 $95,550,000 $255,780,000 $95,550,000 The company projects a sales mix of 50:30:20. The company is planning to product and sell a total of 20,000,000 units in 2024. Required: 1. Compute the contribution margin per unit. 2. Compute the contribution margin ratio. 3. Determine the number of units to be sold at the breakeven point. 4. Determine the revenue at the breakeven point. 5. Assume the company wishes to achieve a net profit of $45,000,000. Determine the number of units to be sold to achieve that level of net profit. 6. Assume the company wishes to achieve a net profit of $25,000,000. Determine the revenue to be achieved that gives that level of net profit
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