Hi-Tech Incorporated produces two different products with the following monthly data.

	Cell	GPS	Total
Selling price per unit	$100	$400
Variable cost per unit	$ 40	$240
Expected unit sales	21,000	9,000	30,000
Sales mix	70 percent	30 percent	100 percent
Fixed costs			$1,800,000

Assume the sales mix remains the same at all levels of sales.

Required:

Calculate the weighted average contribution margin per unit.

How many units in total must be sold to break even?

How many units of each product must be sold to break even?

How many units in total must be sold to earn a monthly profit of $180,000?

How many units of each product must be sold to earn a monthly profit of $180,000?

Answer rating: 100% (QA)

1 Weighted average contribution margin per unit 607016... View the full answer