Question
Malibu, Inc., which has fixed costs of $2,965,000, sells three products whose sales price, variable cost per unit, and percentage of sales units are presented
Malibu, Inc., which has fixed costs of $2,965,000, sells three products whose sales price, variable cost per unit, and percentage of sales units are presented in the table below.
Product A | Product B | Product C | |
Sales Price | $8.00 | $16.00 | $31.00 |
Variable Cost | $4.00 | $6.00 | $17.00 |
Sales Mix | 50% | 30% | 20% |
|
a. | What is the weighted average unit contribution margin? (Round your answer to 2 decimal places.) |
b. | At the break-even point, how many units of Product A must be sold? (Round intermediate calculations to 2 decimal places. Round your answer to the nearest whole number.) |
c. | To make a profit of $1,124,000, how many units of Product B must be sold? (Round intermediate calculations to 2 decimal places. Round your answer to the nearest whole number.) |
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