FCTC manufactures other three other major products namely B, C and D. It furnishes its estimates for the year 2020 about these products to you:
Products 

B 
C 
D 

Sales Mix Ratio 
2 
2 
1 
Selling price per unit 
$ 1,800 
$ 1,400 
$ 1,000 
Variable Cost per unit 
$ 1,200 
$ 1,000 
$ 200 
Forecast unit sales (units) 
8,000 units 
8,000 units 
4,000 units 
Fixed Cost 
$ 5,600,000 
Calculate breakeven point in units using weighted average contribution per unit and show the proof for your answer
Product B  Product C  Product D  
Selling Price  1800  1400  1000 
Variable Price  1200  1000  200 
Contribution Margin  600  400  800 
Sales Ratio  2  2  1 
Weighted Average Contribution Margin = [(2*600)+(2*400)+(1*800)] / 5 = 560
Total Fixed Cost  5600000 
Combined Breakeven Point (Units) = 5600000 / 560 = 10000
Breakeven Point (Units) Product A [10000*2/5] 
4000 
Breakeven Point (Units) Product B [10000*2/5] 
4000 
Breakeven Point (Units) Product C [10000*1/5] 
2000 
Showing Proof for the answer:
Product B  Product C  Product D  
Sales (Units)  4000  4000  2000 
Contrinution Margin per unit  600  400  800 
Total Contribution Margin  2400000  1600000  1600000 
Total Contribution Margin  5600000  
Total Fixed Cost  5600000  
Net Income   
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