Homework Answers
Sales quantity ratio = 3 basic : 1 Deluxe
Weighted average contribution margin per unit
= Basic (37-35)*3/4 + Deluxe (53-45)*1/4
= 1.50 + 2 = 3.50
Overall Breakeven = Fixed cost/Weighted average contribution margin per unit
= 238/3.50 = 68 units
Basic at break even = 68 * 3/4 = 51 units
Deluxe at break even = 68 * 1/4 = 17 units
Option C
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400,000
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%
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%
?
Contribution margin per unit
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