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Selling Price - Boots 43.50 Selling Price - Jeans 50.00 Variable Cost - Boots 25.00 Variable Cost - Jeans 39.00 Sales Mix Boots 4 Jeans
Selling Price - Boots | 43.50 | |||||
Selling Price - Jeans | 50.00 | |||||
Variable Cost - Boots | 25.00 | |||||
Variable Cost - Jeans | 39.00 | |||||
Sales Mix | ||||||
Boots | 4 | |||||
Jeans | 2 | |||||
Fixed Costs | 1,696,000 | |||||
Target After-Tax Income | 1,072,000 | |||||
Tax rate | 33.0% | |||||
The company makes and sells two products as shown above. | ||||||
Required: | ||||||
A. | What is the weighted average contribution margin per unit? (2 marks) |
- | What is the weighted average contribution margin ratio? (2 marks) | ||||||||||
- | What is the breakeven point, in total units, and by product type? (3 marks) | ||||||||||
- | How many units, in total, and by product type, would need to be sold to achieve the Target After-Tax net Income shown? (3 marks) |
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