Homework Answers
Weighted contribution margin = Contribution margin per unit of Audio computer x Sales mix + Contribution margin per unit of Video computer x Sales mix
= 390 x 75% + 500 x 25%
= 292.5+125
= $417.50
At the break even point, Fixed costs are equal to contribution margin and hence there is no profit or loss at the break even point.
Hence, total contribution margin = Fixed costs
= $267,200
Third option is correct option.
Kindly comment if you need further assistance. Thanks‼!
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