National Tennis Racquet Co. produces and sells three models:
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Required:
(Round all percentages to 2 decimal places and monetary calculations to the nearest dollar.)
a. What is the weighted average contribution margin per unit?
b. Calculate the break even point in units assuming the current mix.
c. What would be the number of Smashers, Bashers, and Dinkers in the break even level of sales?
d. What is the weighted average contribution margin ratio?
e. What level of sales (in dollars) would be needed to earn a profit of $125,000, assuming the current mix?
f. What would be the sales (in dollars) of Smashers, Bashers, and Dinkers for total sales calculated in parte?