Question
Consider the following data: Epsilon Iota Omega Number of Units/Product Mix 6,025 8,570 10,095 Sales price per unit $157.62 $192.91 $374.29 Variable cost per unit
- Consider the following data:
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| Epsilon | Iota | Omega |
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| Number of Units/Product Mix | 6,025 | 8,570 | 10,095 |
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| Sales price per unit | $157.62 | $192.91 | $374.29 |
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| Variable cost per unit | $75.42 | $86.57 | $139.12 |
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| Total Fixed Costs | $456,230.00 | $268,490.00 | $188,955.00 |
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| Target Operating Income | $589,400.00 | $457,200.00 | $1,529,640.00 |
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| Contribution margin per unit |
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| Contribution margin ratio |
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| Breakeven point in units |
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| Breakeven in dollars (sales) |
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| # of Units to achieve target income |
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| Weighted Average CM |
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| Units to Break Even with Weighted Average CM |
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| Units to Achieve Target with Weighted Average CM |
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For dollar amounts, round to the nearest cent. For percentages, round to the nearest percent.
- Compute the CM per unit. (5 points)
- Compute the CM ratio per unit. (5 points)
- Compute the # of units to breakeven and achieve target operating income. (8 points)
- Compute the # of sales dollars to breakeven and achieve target operating income. (8 points)
- Calculate the weighted average CM per unit. (5 points)
- Calculate the breakeven in units for weighted average CM (10 points)
- Calculate the number of units to achieve operating income with the weighted average CM (5 points)
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