Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow:...
Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow:
| Percentage of Unit sales | Contribution Margin per unit | |||
| Lens A | 25 | % | $ | 38 |
| Lens B | 40 | 30 | ||
| Lens C | 35 | 43 | ||
Suppose the product mix has shifted to 40/30/30.
Required:
1. Determine the new weighted-average contribution margin per unit.
2. Determine the number of units of each product that Tiago must sell to break even if fixed costs are $187,000.
3. Determine how many units of each product must be sold to generate a profit of $73,000.
Homework Answers
| Particulars | Percentage of Unit sales | Contribution Margin per unit | Weighted Contribution Margin (%*Contribution per unit) |
| Lens A | 25% | 38 | 9.5 |
| Lens B | 40% | 30 | 12 |
| Lens C | 35% | 43 | 15.05 |
| Total : | 36.55 |
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Tiago makes three models of camera lens. Its product mix and
contribution margin per unit follow:...
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Yard Tools manufactures lawnmowers, weed-trimmers, and
chainsaws. Its sales mix and unit contribution margin are as
follows.
Sales Mix
Unit Contribution
Margin
Lawnmowers
20
%
$33
Weed-trimmers
50
%
$22
Chainsaws
30
%
$41
Yard Tools has fixed costs of $4,544,800.
Compute the number of units of each product that Yard Tools must
sell in order to break even under this product mix.
(Use the Weighted-Average Unit Contribution Margin
Ratio rounded to 2 decimal places e.g. 0.25 and round final...
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Yard Tools manufactures lawnmowers, weed-trimmers, and
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follows.
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Exercise 19-06 Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin...
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Question 5 Hoopz Incorporated makes basketball nets. Its sales mix and contribution margin information per unit are as follows Sales Mix Bryant 12 % James 49 % Jordan 39 % Contribution Margin $92 $73 $55 It has fixed costs of $2,389,100. Determine the weighted-average unit contribution margin. (Round answers to 2 decimal places, e.g. 15.25.) Weighted-average unit contribution margin $ LINK TO TEXT Determine the total number of units that the company must produce to break even Total number of...
Yard Tools manufactures lawnmowers, weed-trimmers, and
chainsaws. Its sales mix and unit contribution margin are as
follows.
Sales Mix
Unit Contribution
Margin
Lawnmowers
20
%
$33
Weed-trimmers
50
%
$22
Chainsaws
30
%
$41
Yard Tools has fixed costs of $4,544,800.
Compute the number of units of each product that Yard Tools must
sell in order to break even under this product mix.
(Use the Weighted-Average Unit Contribution Margin
Ratio rounded to 2 decimal places e.g. 0.25 and round final...
Yard Tools manufactures lawnmowers, weed-trimmers, and
chainsaws. Its sales mix and unit contribution margin are as
follows.
Exercise 19-6 X Your answer is incorrect. Try again. Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows. Unit Contribution Margin Sales Mix Lawnmowers $31 Weed-trimmers 20 % 50 % 30 % $25 Chainsaws $37 Yard Tools has fixed costs of $4,350,800. Compute the number of units of each product that Yard Tools must sell...
Stuart Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 99 (69) $ 30 Supreme $126 (85) $ 41 3.25 Stuart expects to incur annual fixed costs of $144,480. The relative sales mix of the products is 60 percent for Super and 40 percent for Supreme. Required a. Determine the total number of products (units of Super and Supreme combined) Stuart must sell to...
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