Malibu, Inc., which has fixed costs of $2,965,000, sells three products whose sa
ID: 2504462 • Letter: M
Question
Malibu, Inc., which has fixed costs of $2,965,000, sells three products whose sales price, variable cost per unit, and percentage of sales units are presented in the table below.
a.
What is the weighted average unit contribution margin? (Round your answer to 2 decimal places.)
b.
At the break-even point, how many units of Product A must be sold? (Round intermediate calculations to 2 decimal places. Round your answer to the nearest whole number.)
c.
To make a profit of $1,124,000, how many units of Product B must be sold? (Round intermediate calculations to 2 decimal places. Round your answer to the nearest whole number.)
Product A Product B Product C Sales Price $8.00 $16.00 $31.00 Variable Cost $4.00 $6.00 $17.00 Sales Mix 50% 30% 20%Explanation / Answer
a.
What is the weighted average unit contribution margin? (Round your answer to 2 decimal places.)
b.
c.
Total units to be sold = (2,965,000+1,124,000)/7.8= 524230.77
Number of units of Product B must be sold= 0.3* 524230.77 = 157269
a.
What is the weighted average unit contribution margin? (Round your answer to 2 decimal places.)
weighted average unit contribution margin = 50%*(8-4) + 30%*(16-6) + 20%*(31-17)= 7.80Related Questions
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