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Calculate the weighted average contribution margin per unit

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Reference no: EM131633374

Hi-Tech Incorporated produces two different products with the following monthly data:

Cell

GPS

Total

Selling price per unit

100

400

 

Variable cost per unit

40

240

 

Expected unit sales

21,000

9,000

30,000

Sales mix

70%

30%

100%

Fixed costs

 

 

$ 1,800,000

Assume the sales mix remains the same at all levels of sales.

Required:

a. Calculate the weighted average contribution margin per unit.

b. How many units in total must be sold to break even?

c. How many units of each product must be sold to break even?

d. How many units in total must be sold to earn a monthly profit of $180,000?

e. How many units of each product must be sold to earn a monthly profit of $180,000?

Reference no: EM131633374

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