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Selling price per unit Variable costs per unit Contribution per unit Hammers R40 R28 R12 Screwdrivers Saws R16 R50 R12 R30 R4

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Answer #1

Weighted average contribution margin per unit = 12*50%+4*30%+20*20% = R11.2 per unit

A. Break even point = Fixed cost / contribution margin

= 76000/11.2 = 6786 units

B. No. Of hammer = 6786*50% = 3393 units

C. Total units = (76000+19000)/11.2 = 8482 units

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