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 % $ 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 intermediate calculations and final answers to the nearest whole number.)

3. Determine how many units of each product must be sold to generate a profit of $80,000. (Round intermediate calculations and final answers to the nearest whole number.)

Homework Answers

Answer #1
1) Weighted average contribution = 38*23%+30*36%+43*41% = $         37.17
2) Number of units of the combined product for break even = Fixed costs/Weighted average CM = 181000/37.17 4870 Units
Break up:
Lens A = 4870*23% = 1120 Units
Lens B = 4870*36% = 1753 Units
Lens A = 4870*41% = 1997 Units
Total 4870 Units
3) Number of units of the combined product for profit of $80000 = (Fixed costs+Desired proti)/Weighted average CM = (181000+80000)/37.17 = 7022 Units
Break up:
Lens A = 7022*23% = 1615 Units
Lens B = 7022*36% = 2528 Units
Lens A = 7022*41% = 2879 Units
Total 7022 Units
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
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...
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 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...
Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as...
Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows. Sales Mix Unit Contribution Margin Lawnmowers 20 % $33 Weed-trimmers 50 % $21 Chainsaws 30 % $37 Yard Tools has fixed costs of $4,342,800. Compute the number of units of each product that Yard Tools must sell in order to break even under this product mix. Lawnmowers units Weed-trimmers units Chainsaws uni
E6-10 (Algo) Calculating Contribution Margin, Contribution Margin Ratio, Margin of Safety [LO 6-2, 6-3] Last month,...
E6-10 (Algo) Calculating Contribution Margin, Contribution Margin Ratio, Margin of Safety [LO 6-2, 6-3] Last month, Laredo Company sold 540 units for $70 each. During the month, fixed costs were $4,704 and variable costs were $42 per unit. Required: 1. Determine the unit contribution margin and contribution margin ratio. 2. Calculate the break-even point in units and sales dollars. 3. Compute Laredo’s margin of safety in units and as a percentage of sales. Complete this question by entering your answers...
Contribution Margin Harry Company sells 21,000 units at $30 per unit. Variable costs are $25.50 per...
Contribution Margin Harry Company sells 21,000 units at $30 per unit. Variable costs are $25.50 per unit, and fixed costs are $31,200. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income. a. Contribution margin ratio (Enter as a whole number.) % b. Unit contribution margin (Round to the nearest cent.) $ per unit c. Operating income $
Sales Mix and Break-Even Analysis Michael Company has fixed costs of $500,240. The unit selling price,...
Sales Mix and Break-Even Analysis Michael Company has fixed costs of $500,240. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $570 $330 $240 ZZ 310 240 70 The sales mix for Products QQ and ZZ is 20% and 80%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the...
Contribution Margin Harry Company sells 30,000 units at $33 per unit. Variable costs are $25.08 per...
Contribution Margin Harry Company sells 30,000 units at $33 per unit. Variable costs are $25.08 per unit, and fixed costs are $104,500. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) % b. Unit contribution margin (Round to the nearest cent.) $ per unit c. Income from operations
Sales mix and break-even analysis Conley Company has fixed costs of $15,525,000. The unit selling price,...
Sales mix and break-even analysis Conley Company has fixed costs of $15,525,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit Yankee $175 $100 $75 Zoro 255 180 75 The sales mix for products Yankee and Zoro is 20% and 80%, respectively. Determine the break-even point in units of Yankee and Zoro of the overall (total) product, E. If...
Heyden Company has fixed costs of $705,600. The unit selling price, variable cost per unit, and...
Heyden Company has fixed costs of $705,600. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $700 $460 $240 ZZ 380 260 120 The sales mix for Products QQ and ZZ is 20% and 80%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product...
Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $1,263,850. The unit selling price,...
Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $1,263,850. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price Variable Cost per Unit Contribution Margin per Unit Model 94 $440 $180 $260 Model 81 320 280 40 The sales mix for products Model 94 and Model 81 is 55% and 45%, respectively. Determine the break-even point in units of Model 94 and Model...