Chapter $7-$CVPAnalysis

You are analyzing how many combined units must be sold to break even, using the weighted$-$average contribution margin method.

Tips: $1)$ Use cell references in Excel so updates to input data flow through the worksheet.

Use consistent formatting $($dollar signs, coimmas, percentages$)$ to improve clarity.

Data table:

Product

Resistance Band

Dumbbell

Sales Price

Variable Cost

Fixed Costs:

$$112,000$

Required Calculations:

Using the data table above:

Weighted Avg. CM per Composite Unit

Break$-$even composite units

Break$-$even $-$ Resistance bands $(60\%)$

Break$-$even $-$ Adjustable Dumbbells $(40\%)$

Break$-$even Sales Revenue $-$ Resistance Bands

Break$-$even Sales Revenue $-$ Adjustable Dumbbells