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
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 | |
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