P-IC is planning to add another product to its product line, a high-end I-Pad cover. Below are estimated price and variable costs of the two products:

Mobile Phone Cover I-Pad Cover

Price $50 per unit $150 per unit

Variable cost $20 per unit $ 80 per unit

Expected sales 14,000 units 6,000 units

P-IC currently has enough production capacity in the manufacturing facility to produce the new product. The two products share $200,000 total fixed costs.

Question 1

Calculate the Combine Weighted Average Contribution Margin. (5 marks)

Question 2

Calculate how many Mobile Phone covers and how many I-Pad covers P-IC have to sell to break even. (5 marks)