Question

Fish Chicken Totals Units 4.000 12.000 16,000 $100,000 Revenue Variable costs 56,000 $180,000 105,000 40,000 $ 35,000 $280,000 161,000 60,000 Fixed costs 20.000 Profit $ 24,000 $59.000 Selling price per unit Contribution margin per unit Profit margin per unit $25.00 $11.00 $6.00 $15.00 $6.25 $2.92 Using the information above, calculate the following: 1. What is the business' weighted average contribution margin per unit? (show your computation) 2. Calculate the business' break-even point in units assuming the current sales mix. (show your computation) What will be the number of Fish and Chicken boxes at the break-even level of sales? (show your computation) What is the business' weighted average contribution margin ratio? (show your computation) 5. What level of sales in dollars) will be needed to earn a profit of $64,950 assuming the current sales mix? (show your computation) 6. What will be the sales in dollars) of Fish and Chicken boxes for the business' total sales calculated in Part e? (show your computation)

Answer 1

S. No. A в 1) Weighted Average Contribution Margin per Units Particulars Fish Chicken Amount Units 4000.00 12000.00 16000.00 Contribution $ 11.00 $ 6.25 C=A*B Combined Contribution Margin D=C/A WACM Selling Price per Unit F=A*E Combined Sales G=F/A WAC Sales per Unit H=D/G*100 WACM In % $ 44,000.00 $ 75,000.00 $ 1,19,000.00 $ 7.44 $ 25.00 $ 15.00 $ 1,00,000.00 $ 1,80,000.00 $ 2,80,000.00 $ 17.50 42.5 S. No A B C=A/B Particulars Fixed Cost Contributin Per Unit Break Even Qty. Selling Price per Unit Break Even in Value 2) Break Even Sales in Units Fish Chicken Amount $ 20,000.00 $ 40,000.00 $ 60,000.00 11.00 $ 6.25 1818.18 6400.00 8218.18 $ 25.00 $ 15.00 $ 45,454.55 $ 96,000.00 $ 1,41,454.55 E=A*D S. No A B Particulars Sales in Units Desired Profit Profit per Unit Combined Profit Combined Profit Per Unit 5) Desired Profit Fish Chicken Amount 4000.00 12000.00 16000.00 $ 64,950.00 $ 6.00 $ 2.92 $ 24,000.00 $ 35,040.00 $ 59,040.00 3.35 D=A*C F=D/A G=64950/5 9040*D H=G/C I=G/H $ 26,402.44 4400.41 $ 38,547.56 13201.22 Desired Profit Split Unit sales to achive this profit Combined Desired Profit per Unit Selling Price per Unit Sales Value $ 64,950.00 17601.63 $ 3.69 $ 25.00 $ 1,10,010.16 $ 15.00 $ 1,98,018.29 K=J*H $3,08,028.46

Hence

1). $7.44

2). 8218 Units

3). 1818.18 & 6400 Units

4). 42.50%

5). Total Sale Value $308028

6). Fish $110010 Chicken $198018