Question

# BBC Builders Inc. produces three products: A, B, and C. The following information is presented for...

BBC Builders Inc. produces three products: A, B, and C. The following information is presented for the three products: Calculate the contribution margin for each product Calculate the break-even point in units of the three products A, B, and C combination based on the sales mix percentaage Fixed Cost \$321,000 Product A Product B Product C Price Per Unit \$40 \$34 \$20 Variable Cost Per Unit \$25 \$20 \$6 Contribution Margin Per Unit Product Mix 30% 20% 50% 100% Weighted Average Price \$12.00 \$6.80 \$10.00 Weighed Average Cost \$7.50 \$4.00 \$3.00 WA Contribution Margin BE in Units(Roudup to Integer)

 CALCULATION OF CONTRIBUTION MARGIN AND BREAK EVEN POINT IN UNITS Particulars PRODUCT A PRODUCT B PRODUCT C Price Per Unit (A) 40 34 20 Less : Variable Cost Per Unit (B) 25 20 6 Contribution Margin per Unit ( C ) 15 14 14 Product Mix (D) 30% 20% 50% 100% Weighted Average Price (A * D) 12 6.8 10 28.8 Weighted Average Cost (B * D) 7.5 4 3 14.5 Weighted Average Contribution Margin (C * D) 4.5 2.8 7 14.3 Break Even Point in Units (Fixed Cost / WA Contribution Margin) 321000/14.30 Break Even Point in Units ( Round off) 22,448.00

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