Question: Seascape Company has two products Product A has a contribution
Seascape Company has two products: Product A has a contribution margin per unit of $4 and Product B has a contribution margin of $6 per unit. Calculate the weighted-average unit contribution margin if Seascape has a 25/75 product mix. Explain how a shift in the product mix would affect Seascape’s weighted-average contribution margin and its break-even point.
Answer to relevant QuestionsRefer to the information presented for Pueblo Company in M6-17. Determine its break-even sales dollars if total fixed costs are$35,000.Refer to the information for Cove’s Cakes in E6-3.Price per cake ....... $17.00 Variable cost per cakeIngredients ........ 2.50Direct labor ....... 1.40Overhead (box, etc.) ..... ...Refer to the information regarding Dana’s Ribbon World in E6-10.Variable cost per rosette ...... $ 1.60Sales price per rosette ...... 3.00Total fixed costs per month .... 889.00Required:1. Suppose Dana’s would like ...Refer to the information in E6-18 for Tiago. Suppose the product mix has shifted to 40/30/30.Required:1. Determine the new weighted-average contribution margin per unit.2. Determine the number of units of each product that ...Pin Cushion Company produces two models of sewing basket. Information about Pin Cushion’s products is given below:Pin Cushion’s fixed costs total $35,200.Required:1. Determine Pin Cushion’s weighted-average unit ...
Post your question