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Xylophan Inc. manufactures surfboards. It plans to introduce three products, the WaveRunner, the King of Waves and the Queen of Surf, with the following characteristics:
Xylophan Inc. manufactures surfboards. It plans to introduce three products, the WaveRunner, the King of Waves and the Queen of Surf, with the following characteristics: WaveRunner King of Waves Queen of Surf Expected Sales Mix 35.0% 32.0% 33.0 % Sales Price $ 98 $ 155 $ 65 Variable Cost $ 43 $ 85 $ 20 The company faces fixed costs of $ 205,661 and is targeting an after-tax profit of $ 550,000 under a tax rate of 29.0 percent. Part A: Calculate the weighted average contribution margin per unit: $ (Round your answer to 2 decimals.) Part B: Calculate the total number of surfboards Xylophan Inc. has to sell to break even. Calculate the total number of each product Xylophan Inc. has to sell to break even. Number of WaveRunners: Number of King of Wavess: Number of Queen of Surfs: Part C: Calculate the total number of each product Xylophan Inc. has to sell to achieve their profit target. Number of WaveRunners: Number of King of Wavess: Number of Queen of Surfs: Part D: Calculate the margin of safety in units
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