Homework Answers
Contribution Margin of A = 14-9 = 5
Contribution margin of B = 26-11 = 15
Weighted average unit contribution margin
= (5*3/4) + (15*1/4) = 7.50
Breakeven point = Fixed cost/Weighted average unit contribution margin
= 388,500/7.50 = 51,800 units
Product A = 51,800 * 3/4 = 38,850
Product B = 51,800 * 1/4 =12,950
Option D
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