Question
Green Lawn manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and contribution margin per unit are as follows. Sales Mix Percentage Contribution Margin Per Unit
Green Lawn manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and contribution margin per unit are as follows.
| Sales Mix Percentage | Contribution Margin Per Unit | |
| Lawnmowers | 10% | $40 |
| Weed-Trimmers | 50% | $25 |
| Chainsaws | 40% | $50 |
Green Lawn has fixed costs of $5,840,000.
1. What is the Weighted-Average Contribution Margin?
2. In order to break-even, what is the total number of units that need to be produced and sold?
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Contemporary Auditing E4 Im
Authors: KNAPP
4th Edition
0324048602, 978-0324048605
