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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

  1. 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

$75.42

$86.57

$139.12

Total Fixed Costs

$456,230.00

$268,490.00

$188,955.00

Target Operating Income

$589,400.00

$457,200.00

$1,529,640.00

Contribution margin per unit

Contribution margin ratio

Breakeven point in units

Breakeven in dollars (sales)

# of Units to achieve target income

Weighted Average CM

Units to Break Even with Weighted Average CM

Units to Achieve Target with Weighted Average CM

For dollar amounts, round to the nearest cent. For percentages, round to the nearest percent.

  1. Compute the CM per unit. (5 points)
  2. Compute the CM ratio per unit. (5 points)
  3. Compute the # of units to breakeven and achieve target operating income. (8 points)
  4. Compute the # of sales dollars to breakeven and achieve target operating income. (8 points)
  5. Calculate the weighted average CM per unit. (5 points)
  6. Calculate the breakeven in units for weighted average CM (10 points)
  7. Calculate the number of units to achieve operating income with the weighted average CM (5 points)

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