WonderFood is a multi-product company that makes three types of cereal. The company's fixed costs are P4,170
Question:
WonderFood is a multi-product company that makes three types of cereal. The company's fixed costs are P4,170 per month. The following table shows a one-month sales of each product:
Type 1 | Type 2 | Type3 | |
Variable Cost per Unit | P25 | P30 | P45 |
Price per Unit | P50 | P60 | P75 |
Unit Sold | 200 | 150 | 130 |
REQUIREMENTS:
a. Show a tabular presentation of the company profit-cost-revenue status showing the different columns similar to the discussion in class. 11 columns to include contribution margin ratio for each product. Label the columns properly, no abbreviations. Use two decimal places for not exact values.
b. Calculate the weighted-average contribution margin ratio, weighted- average contribution margin, and weighted-average contribution margin per unit of the company as a whole.
c. Calculate the weighted-average break-even sales and units of the company as a whole.
d. Prepar an income statement by the type of cereal at the end of the month