Question
Nissin sells cars and have the following product lines Sedans, Sports Utilities Vehicles (SUV) and Family Vans. For its January 2020 operations, the following were
Nissin sells cars and have the following product lines Sedans, Sports Utilities Vehicles (SUV) and Family Vans. For its January 2020 operations, the following were made available for management analysis. Sedan SUVs Family Vans Selling Price 1,000,000 2,000,000 2,200,000 Variable Manufacturing Costs per unit 400,000 900,000 1,100,000 Sales Volume (units) 150 200 50 Fixed manufacturing overhead costs total 275,000,000 and fixed administrative expenses total 25,000,000. NKAD gives a 5% commission on sales (variable selling expense to its car sales people).
1. Compute the Weighted Contribution Margin per unit.
2. Compute the Weighted Contribution Margin ratio.
3. Break-even point in total units.
4. Break-even point in total sales ()
5. Net operating income (loss) under Variable Costing Method
6. Target sales in total to earn 100,000.
7. Following no.6 question above, how much should SUVs business segment contribute to sales?
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