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Following information pertains to X Company's two products: DIGICAM Break Even point- Units--------- 360 Selling Price-----------------------4,500 Variable Costs---------------------2,250 VIDEOCAM Break Even point- Units--------- 250 Selling
Following information pertains to X Company's two products:
DIGICAM
Break Even point- Units--------- 360
Selling Price-----------------------4,500
Variable Costs---------------------2,250
VIDEOCAM
Break Even point- Units--------- 250
Selling Price-----------------------14,250
Variable Costs---------------------5,000
a. Determine the weighted average contribution margin.
b. How much is the total fixed costs?
c. How many units of each product should be sold if the company desires to earn profit before tax of $515,000?
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