Shotz Corporation sells three products: J, K, and L. The following information was taken from a recent
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Shotz Corporation sells three products: J, K, and L. The following information was taken from a recent budget:
J | K | L | |||||||||
Unit sales | 76,000 | 266,000 | 38,000 | ||||||||
Selling price | $ | 54 | $ | 86 | $ | 75 | |||||
Variable cost | 32 | 62 | 45 | ||||||||
Total fixed costs are anticipated to be $3,025,000.
Required:
A. Determine Shotz’s sales mix.
B. Determine the weighted-average contribution margin. (Round your answer to 2 decimal places.)
C. Calculate the number of units of J, K, and L that must be sold to break even.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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