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Question 5 (11 marks) Shoosta Ltd produces two different products with the following month Iv data: A1 A2 Total Selling price per unit 5100 $12
Question 5 (11 marks) Shoosta Ltd produces two different products with the following month Iv data: A1 A2 Total Selling price per unit 5100 $12 Variable cost per unit S 70 S 3 Expected unit sales 21,000 14,000 35,000 Sales mix 50 percent 40 percent 100 percent Fixed costs $500,000 Assume the sales mix remains the same at all levels of sales. Round to the nearest unit of product, hundredth of a per cent, and nearest cent where appropriate. Required [show your worklngs for each question): a} Calculate the weighted average contribution margin per unit. (1 mark) b) How manvr units in total must be sold to break even? [1 mark] c) How manyr units of each product must be sold to break even? [1 mark) d) How many units of each product must be sold to earn a monthly profit of $100,000? [3 marks] e} Prepare a contribution margin income statement for the month. [3 marks) f} Would the CVP Analysis technique be appropriate for multi-product businesses operating during this global pandemic? Explain. (2 marks) Question 6 [7 marks]
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