Metro Health & Spa offers three membership programs: Platinum, Gold and Silver. Metro incurs annual fixed costs of $19,200,000. Additional information about the programs is presented below: Platinum Gold Silver Memberships sold 30,000 150,000 120,000 Membership price $2,500 $1,000 $800 Variable cost per membership $1,000 $500 $200

13. What is the weighted-average unit contribution margin?

14. Assuming that the sales mix of memberships remains constant, what is the total number of memberships that the company must sell to break even?

15. What is the break-even point (in memberships) for the Gold membership?

Thompson Company is considering the development of two products: Alpha and Beta. Regardless of which product is introduced, the anticipated selling price will be $50. Manufacturing cost information follows: Alpha Beta Annual fixed costs $200,000 $300,000 Variable cost per unit $30 $20 16. Which of the two products will be more profitable at a sales level of 20,000 units? a. Alpha b. Beta 17. Refer to the previous question. By what amount is the product (Alpha or Beta) more profitable? 18. At what volume level (i.e., number of units) will the profit for the two products be the same?