Tumbleweed produces two products, T1 and T2. Total fixed costs amount to $161,000, and the company provides

Question:

Tumbleweed produces two products, T1 and T2. Total fixed costs amount to $161,000, and the company provides you with the following data:
...........................................T1................ T2
Selling price per unit................. $40...............$60
Variable cost per unit................ $10............... $30
% of total revenue ...................30%.................. 70%
Required:
At the breakeven point, how many units of T1 and T2 are sold? Use the Weighted ratio approach to determine breakeven revenue.
Contribution Margin
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...