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MEL Industries sells two products with the following characteristics. Fixed costs for the company are $360,000 per year. The companys president, Ms. Mihelic, would like

MEL Industries sells two products with the following characteristics. Fixed costs for the company are $360,000 per year. The companys president, Ms. Mihelic, would like to earn a profit of $500,000 this year.

Product 200 Product 201
Sales price $32 $47
Variable Cost $28 $39
Sales Volume 72,000 units 108,000 units

  1. Determine MEL Industries sales mix. Express as a percentage.

    Product 200

    Product 201

  2. Calculate MEL Industries weighted-average contribution margin. Round to the nearest penny.

3. How many units in total does MEL Industries need to sell to earn the desired profit?

Total Units of Product 200 and Product 201:

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