Homework Answers
Ans : Computation of contribution of sales mix
Contribution of sales mix = ( 33*0.6 ) + ( 46*0.4 )
= $38.2
Total Break even units
BEP = Fixed Cost / Contribution per unit
= $206,280 / $38.2
= 5,400 units
Benson must sell 5,400 units in total to break even.
Break even units of super and supreme
Super = 5,400 * 0.60 = 3,240 units
Supreme = 5,400 * 0.4 = 2,160 units
Ans : Benson must sell 3,240 units of super and 2,160 units of supreme to break even.
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Required
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How many units each of Super and Supreme must Walton sell to
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