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Fat Cat Furniture store sells two types of products; cat beds and scratching posts. Over the past year Fat at sold 6,000 cat beds and
Fat Cat Furniture store sells two types of products; cat beds and scratching posts. Over the past year Fat at sold 6,000 cat beds and 4,000 scratching posts, the sales mix of 6,000 beds to 4,000 posts creates a percentage of 60% for the cat beds and 40% for the scratching posts. Fat Cats total fixed costs are $40,000. The cat beds unit selling price is $44.00 and variable costs per bed are $24.00. The scratching posts unit selling price is $100.00 and variable cost per post is $30.00. Required: 1. Calculate the weighted average contribution margin per unit. 2. Calculate Fat Cats breakeven point in units for the package
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