Question: Multi-product CVP: Barton Fink decides to do consulting in Cloud resource systems along with its General business consulting. It charges $300/hour for general business consulting

Multi-product CVP: Barton Fink decides to do consulting in Cloud resource systems along with its General business consulting. It charges $300/hour for general business consulting and $350/hour for Cloud systems (with variable costs respectively at $145 and $115). According to its projections, Barton Fink expects a sales mix of three general business consulting hours for seven Cloud consulting hours.

Required: (a) Based on this, explain what will the weighted average contribution margin be for the two types of service.

(b) explain in detail what is the total number of hours Carson City must service to break even if fixed costs are now $50,000 ?

(c) explain in detail what are the number of general business hours and the number of Cloud hours the company must perform to break even if fixed costs are now $50,000?

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