Question: Multi-Product CVP Analysis Cathy's Towels sells three items (which it purchases from a supplier): bath towels, hand towels, and washcloths in a 4:3:2 mix (thus,

 Multi-Product CVP Analysis Cathy's Towels sells three items (which it purchases

Multi-Product CVP Analysis Cathy's Towels sells three items (which it purchases from a supplier): bath towels, hand towels, and washcloths in a 4:3:2 mix (thus, a batch of 9 towels has 4 bath towels, 3 hand towels, and 2 washcloths). Each bath towel sells for $10 and costs $4, each hand towel sells for $5 and costs S2; and each washcloth sells for $2.50 and costs S1. The shop's annual fixed expenses are $324,000, and the income tax rate is 40% What is the weighted-average contribution margin per unit? How many bath towels must the firm sell at the breakeven point? Bath Hand Wash Total Mix CM 6.00 24.00 1.50 3.00 9.00 36

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