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

Cell GPS Total

Selling price

per unit 100 400

Variable cost

per unit. 40 240

Expected

unit sales. 21,000 9,000 30,000

Sales mix. 70% 30%. 100%

Fixed costs. $1,800,000

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

Required:

a. Calculate the weighted average contribution margin per unit.

b. How many units in total must be sold to break even?

c. How many units of each product must be sold to break even?

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

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