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Use the following information for the next 3 questions. Metro Health & Spa offers three membership programs: Platinum, Gold and Silver.Metro incurs annual fixed costs

Use the following information for the next 3 questions.

Metro Health & Spa offers three membership programs: Platinum, Gold and Silver.Metro incurs annual fixed costs of $19,200,000.

Additional information about the programs is presented below:

Platinum

Gold

Silver

Memberships sold

30,000

150,000

120,000

Membership price

$2,500

$1,000

$800

Variable cost per membership

$1,000

$500

$200

1.What is the weighted-average unit contribution margin?

2.Assuming that the sales mix of memberships remains constant, what is thetotal number of membershipsthat the company must sell to break even?

3.What is the break-even point (in memberships) for the"Gold"membership?

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