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Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: Percentage of Unit sales Contribution Margin per unit Lens
Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: |
Percentage of Unit sales | Contribution Margin per unit | |||
Lens A | 25 | % | $ | 38 |
Lens B | 40 | 30 | ||
Lens C | 35 | 43 | ||
Required: | |
1. | Determine the weighted-average contribution margin per unit. (Round your intermediate calculations and final answer to 2 decimal places.) |
2. | Determine the number of units of each product that Tiago must sell to break even if fixed costs are $187,000. (Use Weighted average contribution margin as calculated in Requirement 1. Round your answers to the nearest whole number.) |
3. | Determine how many units of each product must be sold to generate a profit of $73,000. (Use Weighted average contribution margin as calculated in Requirement 1. Round your answers to the nearestwhole number.) |
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