Hi$-$Tech Incorporated produces two different products with the following monthly data

Cell GPS Total

Selling price per unit $100400$

Variable cost per unit $40240$

Expected unit sales $21,0009,00030,000$

Sales mix $\%70\%30\%100\%$

Fixed costs $1,800,000$

Assume the sales mix remains the same at all levels of sales

Required:

$1$ Calculate the weighted average contribution margin per unit

$2$ How many units in total must be sold to break even?

$3$ How many units of each product must be sold to break even?

$4$ How many units in total must be sold to earn a monthly profit of $$180,000?$

$5$ How many units of each product must be sold to earn a monthly profit of $$180,000?$

$6$ Using the information provided, prepare a contribution margin income statement for the month

$7$ Calculate the weighted average contribution margin ratio

$8$ Find the break$-$even point in sales dollars

$9$ How much sales dollars of each product to break$-$even?

$10$ What amount of sales dollars is required to earn a monthly profit of $$540,000?$

$11$ How much sales dollars of each product to earn a montly profit of $$540,000??$

$12$ Assume the contribution margin income statement prepared in requirement $6$ is the company's base case. What is the Margin of Safety in dollars?

Cell GPS Total

Sales $100400500$

Less: Variable $40240280$

Contribution Margin $60160220$

Sales Mix $70\mathrm{.}0\%30\mathrm{.}0\%$

Weighted Average Contribuion Margin:

$142+48=90$

$7$ Weighted Average CM Ratio

Break$-$even point in units $=$ Total fixed costs $+$ Target profit $/$ Weighted average contribution margin per unit

Break$-$even point in units $=+/$

Break$-$even point in units $=/$

$2$ Break$-$even point in units $=$

$3$ BE Units per Product $14,0006,000$

Target Profit in Units $=$ Total fixed costs $+$ Target profit $/$ Weighted average contribution margin per unit

Target Profit in Units $=+/90$

Target Profit in Units $=/$

$4$ Target Profit in Units $=22,000$

$5$ Target Profit Units per product $15,4006,600$

Cell GPS Total

$6$ Sales $2,100,0003,600,0005,700,000$

Less: Variable $840,0002,160,0003,000,000$

Contribution Margin $1,260,0001,440,0002,700,000$

Less Fixed Costs $1,800,000$

Operating Income $900,000$

Break$-$even point in Dollars $=$ Total fixed costs $+$ Target profit $/$ Weighted average contribution margin Ratio

Break$-$even point in Dollars $=+/$

Break$-$even point in Dollars $=/$

$8$ Break$-$even point in Dollars $=$

$9$ BE dollars per product

Target Profit in Dollars $=$ Total fixed costs $+$ Target profit $/$ Weighted average contribution margin ratio

Target Profit in Dollars $=+/$

Target Profit in Dollars $=/$

$10$ Target Profit in Dollars $=$

$11$ Target Profit Dollars per product

Margin of Safety Dollars

Margin of Safety in Dollars $=$ Total Sales $($or Projected Sales$)$ Breakeven Sales

MOS$ $=$ S $-$ BES

MOS$ $=5,700,000-3,333,333$

MOS$ $=2,366,667$