Boise Company manufactures and sells three products: Good, Better, and Best. Annual fixed costs are $3,315,000, and data about the three products follow. Sales mix in units Selling price Variable cost Good 30% $250 100 Better 50% $350 Best 20% $500 150 250 Required: A. Determine the weighted-average unit contribution margin. B. Determine the break-even volume in units for each product. C. Determine the total number of units that must be sold to obtain a profit for the company of $234,000.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7MC: Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and...
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Classroom
1:14 PM
@ 1 33%
Screenshot_2020_1013_1..
Activity 2
Boise Company manufactures and sells three products: Good, Better, and Best. Annual fixed costs are
$3,315,000, and data about the three products follow.
Sales mix in units
Selling price
Variable cost
Good
30%
$250
100
Better
50%
$350
Best
20%
$500
150
250
Required:
A. Determine the weighted-average unit contribution margin.
B. Determine the break-even volume in units for each product.
C. Determine the total number of units that must be sold to obtain a profit for the company of
$234,000.
Transcribed Image Text:Classroom 1:14 PM @ 1 33% Screenshot_2020_1013_1.. Activity 2 Boise Company manufactures and sells three products: Good, Better, and Best. Annual fixed costs are $3,315,000, and data about the three products follow. Sales mix in units Selling price Variable cost Good 30% $250 100 Better 50% $350 Best 20% $500 150 250 Required: A. Determine the weighted-average unit contribution margin. B. Determine the break-even volume in units for each product. C. Determine the total number of units that must be sold to obtain a profit for the company of $234,000.
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