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 21 % $ 48 Lens B 44 40 Lens C 35 53 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 $185,000. 3. Determine how many units of each product must be sold to generate a profit of $78,000.
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 21 % $ 48 Lens B 44 40 Lens C 35 53 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 $185,000. 3. Determine how many units of each product must be sold to generate a profit of $78,000.
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7PB: Abilene Industries manufactures and sells three products (XX, W, and ZZ). The sales price and unit...
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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 | 21 | % | $ | 48 |
| Lens B | 44 | 40 | ||
| Lens C | 35 | 53 | ||
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 $185,000.
3. Determine how many units of each product must be sold to generate a profit of $78,000.
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