Question

Edgewater Enterprises manufactures two products. Information follows:

Product A | Product B | |||||

Sales price | $ | 13.50 | $ | 16.75 | ||

Variable cost per unit | $ | 6.35 | $ | 7.05 | ||

Product mix | 40% | 60% | ||||

Suppose that each product’s sales price increases by 20 percent. Sales mix remains the same and total fixed costs are $250,000.

Calculate the new break-even point for Edgewater. **(Round
your intermediate calculations to 2 decimal places and final
answers to the nearest whole number.)**

Answer #1

Edgewater Enterprises manufactures two products. Information
follows:
Product A
Product B
Sales price
$
13.50
$
17.20
Variable cost per unit
$
6.75
$
7.75
Product mix
40%
60%
Calculate the break-even point if Edgewater’s total fixed costs are
$247,000. (Round your intermediate calculations to 2
decimal places and final answer to the nearest whole
number.)

Edgewater Enterprises manufactures two products. Information
follows:
Product A
Product B
Sales price
$
14.00
$
17.15
Variable cost per unit
$
6.30
$
7.70
Product mix
40%
60%
Calculate Edgewater’s weighted-average contribution margin per
unit. (Round your intermediate calculations and final
answer to 2 decimal places.)

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Product A
Product B
Selling price per unit
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$30
Variable costs per unit
45
15
Contribution margin per unit
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$15
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Required:
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$
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