Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions