Boise Company manufactures and sells three products: Good, Better, and Best. Annual fixed costs are $3,315,000, and data about the three products follow.

	Good	Better	Best
Sales Mix in Units	30%	50%	20%
Selling Price	250	350	500
Variable Price	100	150	250

Required:
A. Determine the weighted-average unit contribution margin.
B. Determine the break-even volume in units for each product.
C. Determine the total number of units that must be sold to obtain a profit for the company of $234,000.
D. Assume that the sales mix for Good, Better, and Best is changed to 50%, 30%, and 20%, respectively. Will the number of units required to break-even increase or decrease? Explain.

Answer rating: 100% (QA)

Determine the weightedaverage contribution margin from the following formul... View the full answer