Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 6-124 (Algo) (LO 6-6] Drake, Inc., which has fixed costs of $2,995,200, sells three products whose sales price, variable cost per unit, and percentage
Problem 6-124 (Algo) (LO 6-6] Drake, Inc., which has fixed costs of $2,995,200, sells three products whose sales price, variable cost per unit, and percentage of sales units are presented in the table below. Sales Price Variable Cost Sales Mix Product A $14.00 $ 7.00 40% Product B $38.00 $15.00 50% Product C $108.00 $ 43.00 10% a. What is the weighted average unit contribution margin? (Round final answers to two decimal places.) Unit Contribution Margin b. At the break-even point, how many units of Product A must be sold? (Do not round Intermediate calculations.) Number of Units Sold c. To make a profit of $2,396,160, how many units of Product B must be sold? (Do not round Intermediate calculations.) Number of Units Sold
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started