Question: How do I show calculations for finding the WACM in this case analysis? 1.Ignore any current plans.Using last year's actual data and sales mix, how
How do I show calculations for finding the WACM in this case analysis?
1.Ignore any current plans.Using last year's actual data and sales mix, how many total cases would David need to sell in order to earn $80,000 before tax?How many cases of each of the four labels would TM need to produce?
Weighted Average Contribution Margin = WACM
WACM per case = $10.22
Total CM/Total Cases sold = 31,911.41/30,730
Required total cases to sale = 35,227
Required pre-tax Income$80,0000
Direct Fixed Costs$34,633.84
Common Fixed Costs$245,389.44
Req CM$360,023.28
Req CM/WACM per Case=360023.28/10.22
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