a)
Product Super |
Product supreme |
Total |
|
selling price per unit |
99 | 131 | |
variable cost per unit |
-66 |
-91 |
|
contribution margin per unit |
33 |
40 |
|
sales mix |
60% |
40% |
|
Weighted average contribution margin per unit |
19.8 |
16 |
35.8 |
Weighted average contribution margin per unit = $35.8
Number of units at break even = Total fixed cost/ Weighted average contribution margin per unit
= 139,620/35.8
= 3,900 units
b)
Break even quantity of product Super = Number of units at break even x Sales mix proportion of product Super
= 3,900 x 60%
= 2,340 units
Break even quantity of product Supreme = Number of units at break even x Sales mix proportion of product Supreme
= 3,900 x 40%
= 1,560 units
a | Total number of products | 3,900 | Units |
b | Product super | 2,340 | units |
Product supreme | 1,560 | units |
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