


Solution :
(1) Weighted Average Contribution Margin Ratio :
Particulars  Birthday  Standard  Large  Total 
(a) Sales %  30%  60%  10%  100% 
(b) Contribution Margin Ratio  20%  35%  50%  
(c) Weighted Contribution (a * b)  6%  21%  5%  32% 
weightedaverage contribution margin ratio = 32%
(2)
Total Breakeven Sales in Dollars = Fixed Cost / Weighted Average Contribution Margin Ratio
= $ 533,440 / 32%
= $ 1,667,000
Particulars  Birthday  Standard  Large 
(a) Sales %  30%  60%  10% 
(b) Breakeven Sales ($ 1,667,000 * a)  $ 500,100  $ 1,000,200  $ 166,700 
Please vote up and write your doubts in comment section.
Get Answers For Free
Most questions answered within 1 hours.