Based on the data presented in the Unit VIII Spreadsheet Template in Excel (CM Breakeven tab): • Calculate the contribution margin (CM) for each of the three products sold at the cookie business. • Calculate the weighted average CM. • Calculate the breakeven point.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2BE: Contribution margin Waite Company sells 250,000 units at 120 per unit. Variable costs are 78 per...
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Part 1: Based on the data presented in the Unit VIII Spreadsheet Template in Excel (CM Breakeven tab):
• Calculate the contribution margin (CM) for each of the three products sold at the cookie business.
• Calculate the weighted average CM.
• Calculate the breakeven point.
Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss the results based on your calculations as far as which type of cookie you think is the most profitable, which has the highest CM, etc. 

 

Units Sold
Sales
Less: Variable Costs
Contribution Margin
Less: Common Fixed Costs
Profit
Cookie Business
Per item Contribution Margin
Weighted Average Contribution Margin
Break-even point in units
Chocolate Chip
1,500,000
$
1,875,000.00 $
$
690,000.00 $ 205,800.00 $
$ 1,185,000.00 $ 676,200.00 $
0.54
Sugar
980,000
Specialty
300,000
882,000.00 $ 1,050,000.00 $
81,000.00 $
969,000.00 $
$
$
0.35
0.11
Total
2,780,000
3,807,000.00
976,800.00
2,830,200.00
125,000.00
2,705,200.00
Transcribed Image Text:Units Sold Sales Less: Variable Costs Contribution Margin Less: Common Fixed Costs Profit Cookie Business Per item Contribution Margin Weighted Average Contribution Margin Break-even point in units Chocolate Chip 1,500,000 $ 1,875,000.00 $ $ 690,000.00 $ 205,800.00 $ $ 1,185,000.00 $ 676,200.00 $ 0.54 Sugar 980,000 Specialty 300,000 882,000.00 $ 1,050,000.00 $ 81,000.00 $ 969,000.00 $ $ $ 0.35 0.11 Total 2,780,000 3,807,000.00 976,800.00 2,830,200.00 125,000.00 2,705,200.00
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