Question
Malibu, Inc., which has fixed costs of $2,978,000, sells three products whose sales price, variable cost per unit, and percentage of sales units are presented
Malibu, Inc., which has fixed costs of $2,978,000, 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 | $ | 13.00 | $ | 30.00 | |||
Variable Cost | $ | 5.00 | $ | 5.00 | $ | 16.00 | |||
Product Mix | 60 | % | 20 | % | 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 $1,115,000, 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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