IN UNIT Product Mix (in unit) Sales (per unit) Variable Cost (per unit) Contribution Margin (per unit)

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Question:

	IN UNIT
	Product Mix (in unit)	Sales (per unit)	Variable Cost (per unit)	Contribution Margin (per unit)
Watches	4	$10.00	$3.00	$7.00
Bracelets	6	$5.00	$2.00	$3.00	28

Fixed Cost per month = $100

Requirement
At break even, how many units of each product we have to sale?
Contribution margin for the whole company=46/70=65.7%
$=TFC/ Contribution margin ration for the whole company
$= 100/65.7%	152	$

Sale	152
Total variable cost 34%	52
Contribution margin	100
Fixed cost	100
Net income	0

Related Book For answer-question

answer-question

Managerial Accounting

Managerial Accounting

ISBN: 978-1118338445

2nd edition

Authors: Charles E. Davis, Elizabeth Davis

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Posted Date: Aug 17, 2023 10:35 PM

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