Question
Ouest Inc. produces three products: A, B, and C. The following information is presented for the three products: Fixed Cost $ 81,300 Product A Product
Ouest Inc. produces three products: A, B, and C. The following information is presented for the three products:
| Fixed Cost | $ 81,300 |
|
|
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| Product A | Product B | Product C |
| Units produced | 120 | 80 | 200 |
| Price Per Unit | $ 300 | $ 400 | $ 800 |
| Variable Cost Per Unit | $ 150 | $ 220 | $ 420 |
Required:
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Calculate the contribution margin for each product
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Calculate the break-even point in units of the three products A, B, and C combination based on the sales mix percentage
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Please give suggestions to the decision-makers about how to increase profit based on the CVP analysis
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