Calculation

(B) Break-even analysis: Multi product environment Zee Frames Limited, a Hamilton based company, manufactures and sells two types of quality photo frames, Circular photo frame and Square photo frame. Currently the Circular Photo frame accounts up for 60 per cent of the total sales while the Square photo frame accounts for the rest. The company's weighted average contribution margins for each photo frame is calculated below: Circular Photo frame Square Photo frame 7 Selling Price Less Variable costs Contribution margin X Weight Weighted average contribution margin per photo frame 0.6 4.80 1.20 The company has a total fixed costs of $38,000. Required: Calculate the following: (a) The total weighted average contribution margin for both the photo frames. (b) The total number of photo frames that must be sold for the company to break even