a.)
Compute expected contribution as per sales mix:
Super | Supreme | |
Contribution margin per unit | $23 | $44 |
× | ||
Sales mix percentage | 70% | 30% |
Expected contribution as per sales mix | $16.10 | $13.20 |
Total = $16.10 + $13.20 = $29.30
__________________________________________
Breakeven point = Total Fixed Cost / Contribution per unit
= $155,290 / $29.30
= 5,300 units
__________________________________________
2.
Super | Supreme | |
BEP units | 5300 | 5300 |
× | ||
Sales mix percentage | 70% | 30% |
3710 | 1590 |
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