Question
The businesses information for 2 products is: Product % of total sales * Break-even point. Product A ProductB Sales Price $16 $29 Variable Costs $6
The businesses information for 2 products is:
| Product % of total sales * Break-even point.Product A | ProductB | ||
| Sales Price | $16 | $29 | |
| Variable Costs | $6 | $9 | |
| Annual sales (units) | 12,000 | 8,000 | |
| Fixed Costs(all products) | $120,000 | ||
Complete the following:
1.Identify the sales mix.
2.Calculate the unit contribution margin for each product.
3.Calculate the weighted average unit contribution margin (WACM):
4.Calculate the break-even point based on the WACM
5.Calculate the break-even point for the individual products as:
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Managerial Accounting
Authors: Libbey Phillips Whitecotton
2nd Edition
1259240908, 978-1259240904
