Question

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 | 23 | % | $ | 41 |

Lens B | 39 | 33 | ||

Lens C | 38 | 46 | ||

**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
$181,000.

**3.** Determine how many units of each product
must be sold to generate a profit of $72,000.

Answer #1

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 23 % $ 38 Lens B 36 30 Lens C
41 43 Required:
1. Determine the weighted-average contribution margin per unit.
(Round your intermediate calculations and final answer to 2 decimal
places.)
2. Determine the number of units of each product that Tiago must
sell to break even if fixed costs are $181,000. (Round...

Tiago makes three models of camera lens. Its product mix and
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Percentage of Unit sales
Contribution Margin per unit
Lens A
25
%
$
38
Lens B
40
30
Lens C
35
43
Suppose the product mix has shifted to 40/30/30.
Required:
1. Determine the new 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
$187,000.
3. Determine how...

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Unit Contribution
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Lawnmowers
20
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$33
Weed-trimmers
50
%
$21
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30
%
$37
Yard Tools has fixed costs of $4,342,800.
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$60 for Product C. The company’s sales mix in units is as follows:
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resource for each product:
Product A: $ Answer per hour
Product B: $ Answer per hour
b) If Zhuang LTD has a limited number of machine hours and can sell
all the units produced of either product, which product should it...

In Zhuang LTD , data concerning two products are Contribution
margin per unit—Product A $10, Product B $12; machine hours
required for one unit—Product A 2, Product B 3.
a) Calculate the contribution margin per unit of the limited
resource for each product:
Product A: $ Answer per hour
Product B: $ Answer per hour
b) If Zhuang LTD has a limited number of machine hours and can sell
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Snow Cap Springs produces and sells water filtration systems for
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below.
basic
basic plus
premium
total
units sold
1,200
420
380
2,000
selling price
246
395
795
variable cost
197
290
417
The company’s total fixed costs to produce the filtration
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a) Determine the sales mix as a function of units sold for the
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basic
basic plus
premium
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Sales Mix and
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Selling Price
Variable Cost per Unit
Contribution Margin per Unit
QQ
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$330
$240
ZZ
310
240
70
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Yankee
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$100
$75
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255
180
75
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