Question
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
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. 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?
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