Question: WaterSports USA sells three types of wake boards. Information relative to sales in units and dollars are given below.
|
Wakeman
|
Jumper
|
Novice
|
Total
|
|
Sales in Units
|
1,000
|
5,000
|
2,000
|
8,000
|
|
Price per Unit
|
$200
|
$150
|
$100
|
|
|
Variable cost per Unit
|
$150
|
$100
|
$50
|
|
Fixed costs are projected to be $100,000. Carry all calculations to four decimal places.
Required: Compute the contribution margin per unit.
Compute the weighted contribution margin.
Compute the break-even in total units.
Compute the break-even per product.
Discuss briefly the usefulness of the computation in the business world.