Question: Question Two (40 points) Avaya Co. makes and sells two types of ceiling fans, Basic and Deluxe. Data concerning these products are as follows: Basic
Question Two (40 points) Avaya Co. makes and sells two types of ceiling fans, Basic and Deluxe. Data concerning these products are as follows: Basic Deluxe Units sold 80.000 20.000 Unit selling price $25 $40 Variable cost per unit 10 15 Annual fixed expenses are $44,370. A. Compute the weighted average contribution margin /unit (15 Points) Calculation Final answer B. Compute the break-even point in units. Calculation (15 Points) Final answer C. How many fans of each type must be sold to earn a target profit of $32,130. (10 Points) Calculation Final answer Assessment Document - 2020-2021 Page 3 of 3
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