Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Units 4,000 12.000 16,000 $280,000 $100,000 56,000 20,000 $180,000 105,000 Revenue Variable costs Fixed costs Profit 161,000 40,000 60,000 $ 59.000 S 24.000 $ 35.000

image text in transcribed
Units 4,000 12.000 16,000 $280,000 $100,000 56,000 20,000 $180,000 105,000 Revenue Variable costs Fixed costs Profit 161,000 40,000 60,000 $ 59.000 S 24.000 $ 35.000 $25.00 Selling price per unit Contribution margin per unit Profit margin per unit $15.00 $6.25 $11.00 $6.00 $2.92 When Thomas took accounting courses at college, he knows how to do cost-volume- profit analysis pretty well. However, he just remembers how to do the analysis for those companies with only one product. Therefore, he needs your help to calculate the following: What is the business' weighted average contribution margin per unit? (show your computation) b. Calculate the business' break-even point in units assuming the current sales mix. (show your computation) What will be the number of Premium Caviar and Goose Foie Gras boxes at the break- even level of sales? (show your computation) What is the business' weighted average contribution margin ratio? (show your computation)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Management Control Systems

Authors: Kenneth Merchant, Wim Van Der Stede

5th Edition

1292444134, 9781292444130

More Books

Students also viewed these Accounting questions

Question

What is meant by consumer lifestyle?

Answered: 1 week ago

Question

What are the organizations task goals on this issue?

Answered: 1 week ago