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Calculate the total contribution margin

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Question - Bankstown Ltd has three product lines: A, B and C. The contribution margins of the products are $3, $2 and $1, respectively. Michael Gallaher, the marketing manager forecasts sales of 200,000 units in the coming period, consisting of 20,000 units of A, 100,000 units of B and 80,000 units of C. The company's fixed costs for the period are $255,000.

Required -

(a) Calculate the break-even point in units using the given sales mix.

(b) Calculate the break-even point in units using the given sales mix with the expected profit after tax is $30,600 and the tax rate is 40%.

(c) Using the original data, calculate the total contribution margin and the profit using the given sales mix for the total sales of 200,000 units.

Reference no: EM133157512

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