Analyzing Multiproduct CVP
BlueStar makes three models of camera lens. Its sales mix and contribution margin per unit follow:
| Percentage of Total Sales | CM per Unit |
Lens A | 25% | $40 |
Lens B | 40 | 32 |
Lens C | 35 | 45 |
Required:
1.Determine the weighted average contribution margin.
2.Determine the number of units of each product that BlueStar must sell to break even if fixed costs are $187,000.
3.Determine how many units of each product must be sold to generate a profit of $73,000.
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