Question
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 | 42 | % | $ | 36 |
Lens B | 29 | 28 | ||
Lens C | 29 | 41 | ||
Suppose the product mix has shifted to 47/27/26. Required: 1. Determine the new weighted-average contribution margin per unit. (Round your intermediate calculation to 2 decimal places. Round your 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 $190,000. (Round intermediate calculations to nearest whole number. Round your answers up to the next whole number.) 3. Determine how many units of each product must be sold to generate a profit of $68,000. (Round intermediate calculations to nearest whole number. Round your answers up to the next whole number.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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