The Nut House, Inc., sells three types of nuts: almonds, cashews, and walnuts. Ten thousand cans of
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The Nut House, Inc., sells three types of nuts: almonds, cashews, and walnuts. Ten thousand cans of nuts were sold in 2011, and the amount of walnuts sold were twice as much as the number of cans of cashews, whereas almond sales were one-half the amount of cashew sales. Fixed costs were $40,000, and the unit sales prices and unit variable costs were as follows:
Required:
1. Compute the number of cans of each kind of nut sold.
2. Compute the sales mix percentages.
3. Compute the weighted-average contribution margin per unit.
4. Compute the overall break-even unit sales.
5. Compute the unit sales of almonds, cashews, and walnuts at the break-even point.
6. Compute the break-even dollar sales of almonds, cashews, andwalnuts.
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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