Question
ZYZ is the maker of high-quality golf bags. The company currently has three different lines of bags, which it sells to sporting goods stores and
ZYZ is the maker of high-quality golf bags. The company currently has three different lines of bags, which it sells to sporting goods stores and golf shops throughout the world.
ZYZ sells a constant mix of 3 medium-sized bags for 2 small bags and 4 medium bags for 3 large-sized bags.
Total fixed costs for the year are expected to be 2,037,550
Note: round all decimals to three places in the computation.
Small. | Medium. | Large. | ||
Selling price per bag. | 100 | 150 | 250 | |
Variable cost per bag | 60 | 96 | 160 |
Required:
What is the weighted average contribution margin ratio for the large bag (round final answers to three decimal places) and what would be the breakeven point in units for the medium-sized bags ?
(Please show your steps in order to understand it and being able to reproduce it myself, Thanks
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