Jamal & Co. makes and sells two types of shoes, Plain and Fancy. Data concerning
ID: 2578001 • Letter: J
Question
Jamal & Co. makes and sells two types of shoes, Plain and Fancy. Data concerning these products are as follows:
Sixty percent of the unit sales are Plain, and annual fixed expenses are $27,500.
The weighted-average unit contribution margin is:
rev: 10_29_2012
10.
Required information
The weighted-average unit contribution margin is (Round intermediate calculations and final answer to 2 decimal places):
$13.00.
$5.00.
an amount other than those above.
$5.25.
$.80.
11.
Required information
Assuming that the sales mix remains constant, the total number of units that Jamal must sell to break even is (Round intermediate calculations to 2 decimal places and final answer to nearest whole number):
2,932.
5,237.
3,147.
an amount other than those above.
5,500.
Plain Fancy Unit selling price $20.00 $31.00 Variable cost per unit 15.00 26.00Explanation / Answer
contribution margin=(Sales-Variable costs)
contribution margin for Plain=(20-15)=$5
contribution margin for Fancy=31-26=$5
Hence weighted contribution margin=(5*0.6)+(5*0.4)=$5 (% of Fancy=(100-60)=40%)
Breakeven sales=Fixed costs/contribution margin
=(27500/5)=5500 units
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