Malibu, Inc., which has fixed costs of $2,965,000, sells three products whose sales price, variable cost per

Question:

Malibu, Inc., which has fixed costs of $2,965,000, sells three products whose sales price, variable cost per unit, and percentage of sales units are presented in the table below.

a. What is the weighted average unit contribution margin? (Round your answer to 2 decimal places.)
b. At the break-even point, how many units of Product A must be sold? (Round intermediate calculations to 2 decimal places. Round your answer to the nearest whole number.)
c. To make a profit of $1,124,000, how many units of Product B must be sold? (Round intermediate calculations to 2 decimal places. Round your answer to the nearest whole number.)

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...