Question: i need help solving these problems Economy Standard Deluxe Total Units sold 10,000 6,000 4,000 20,000 Revenue $ 480,000 $ 336,000 $ 272,000 $1,088,000 Variable
Economy Standard Deluxe Total Units sold 10,000 6,000 4,000 20,000 Revenue $ 480,000 $ 336,000 $ 272,000 $1,088,000 Variable costs $ 300,000 $ 192,000 $144,000 $636,000 Contribution margin $ 180,000 $144,000 $ 128,000 $452,000 Contribution margin% 43% 42% Fixed costs $ 339,000 Contribution Margin + Revenue 38% 47% Net Income $452k - $339 = $113k 1. In simple words, describe what the Contribution margin % (42%) tells us 2. Calculate the weighted average unit contribution margin 3. Calculate the break-even weighted average units 4. What happens to our break-even units if the product mix changes? Does it depend on which product's sales decrease? 5. Say you could focus time and attention at reviewing the variable costs for one product. Which product do you review, and why
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
