Question - Yourco Inc. manufactures and sells two products. Relevant per unit data concerning each product follow.
|
Product
|
Basic
|
Deluxe
|
|
% of sale
|
25%
|
75%
|
|
Selling price
|
$40
|
$48
|
|
Variable costs
|
55%
|
50%
|
1) Compute the weighted average contribution margin ratio.
2) If fixed costs are $97,500 per month calculate the breakeven point.