Question

Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow:...

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.

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