Question
The Case Company produces two types of phone protective cases: the plain model and the fancy model. Last year, Case sold 100,000 plain cases and
The Case Company produces two types of phone protective cases: the plain model and the fancy model. Last year, Case sold 100,000 plain cases and 50,000 fancy cases. Also given:
Total fixed costs are $70,000.
: Plain Fancy
Selling price/unit $13.00 $16.00
Variable cost/unit 5.00 7.00
20. What is the weighted average CM (contribution margin) per unit (using sales mix as the weights)?
a. | $5.33 | c. | $4.33 |
b. | $3.00 | d. | $8.33 |
21. Refer to the data in question 20. What is the total break-even point in units (rounded)?
a. | 8,400 | c. | 2,800 |
b. | 5,600 | d. | Cannot be determined |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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