Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: Percentage % of Unit sales Contribution Margin per unit $ Lens A 26 40 Lens B 39 32 Lens C 35 45 Required: 1. Determine the weighted-average contribution margin per unit. 2. Determine the number of units of each product that Tiago must sell to break even if fixed costs are $178,000. 3. Determine how many units of each product must be sold to generate a profit of $66,000.
Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: Percentage % of Unit sales Contribution Margin per unit $ Lens A 26 40 Lens B 39 32 Lens C 35 45 Required: 1. Determine the weighted-average contribution margin per unit. 2. Determine the number of units of each product that Tiago must sell to break even if fixed costs are $178,000. 3. Determine how many units of each product must be sold to generate a profit of $66,000.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter20: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4CMA: Eagle Brand Inc. produces two products as follows: Eagle Brand has 1,000 lbs. of raw materials that...
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Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow:
| Percentage % of Unit sales | Contribution Margin per unit $ | |||
| Lens A | 26 | 40 | ||
| Lens B | 39 | 32 | ||
| Lens C | 35 | 45 | ||
Required:
1. Determine the weighted-average contribution margin per unit.
2. Determine the number of units of each product that Tiago must sell to break even if fixed costs are $178,000.
3. Determine how many units of each product must be sold to generate a profit of $66,000.
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