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USA Publishing produces two types of books (E-Book and Hard Copy), the following information was compiled by the accounting department for the year ended 2019:
USA Publishing produces two types of books (E-Book and Hard Copy), the following information was compiled by the accounting department for the year ended 2019: Model Selling price per unit Variable cost per unit Hard Copy 200 40 E-book 100 20 Fixed costs if the Hard Copy is produced will be 200,000, but will be only 120,000 if the E- book was produced. Third Part: Assume that the company decided to produce both models in equal proportions, and the total fixed cost is $600,000. (36 Points) a) Compute the weighted average contribution margin per unit. (15 points) b) Compute the company's breakeven point in units. (9 points) c) How many units the company has to sell in order to earn a profit of $120,000? (12 points)
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