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Rooney Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Var

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Solution

Total number of products                    5,600
Product Super                    3,360
Product Supreme                    2,240

Working

Super Supreme Total
Price $               92.00 $           122.00
Variable Cost per unit $               68.00 $             81.00
Contribution Margin $               24.00 $             41.00
Product Mix 60.00% 40.00% 100.00%
Weighted Average Contribution Margin $               14.40 $             16.40 $      30.80

.

A Total Fixed Cost plus profit $     172,480.00
B Weighted Average Contribution Margin $               30.80
C = A/B Multi Product Break Even point                    5,600
C x 60% Super                    3,360
C x 40% Supreme                    2,240
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