Witrox Bhd sells two models of smartphone, the Oppo and the Xiaomi. Oppo Xiaomi Sales price per
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Question:
- Witrox Bhd sells two models of smartphone, the Oppo and the Xiaomi.
- Oppo Xiaomi
- Sales price per unit 60.0 85.0
- Variable cost per unit 35.0 54.0
- Contribution margin per unit 25.0 31.0
- Witrox has determined that it would break even at an annual sales volume of 50,000 units, of which 75% would be Oppo.
- Required:
- a) What are the contribution margin ratios for each product and the company?
- b) What is the amount of Witrox's estimated annual fixed costs?
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