Question - Malibu, Inc., which has fixed costs of $2,150,000, sells three products whose sales price, variable cost per unit, and percentage of sales units are presented in the table below.
|
Product A
|
Product B
|
Product C
|
|
Sales Price
|
$ 7.00
|
$ 12.00
|
$25.00
|
|
Variable Price
|
$ 3.00
|
$ 10.00
|
$ 12.00
|
|
Sales Mix
|
60%
|
30%
|
10%
|
a. What is the weighted average unit contribution margin?
b. At the break-even point, how many units of Product A must be sold?
c. To make a profit of $1,075,000, how many units of Product B must be sold?