Calculate the weighted average unit contribution margin

Assignment Help Accounting Basics
Reference no: EM132714288

Question - International Printer Machines (IPM) builds three computer printer models: Alpha, Beta, and Gamma. Information for these three products is as follows:

 

Alpha

Beta

Gamma

Total

Selling price per unit

$250

$400

$1

500

Variable cost per unit

$80

$200

$800

 

Expected unit sales (annual)

12,000

6,000

2,000

20,000

Sales mix

50%

40%

10%

100%

Total annual fixed costs are $5,000,000. Assume the sales mix remains the same at all levels of sales.

Required -

a) Calculate the weighted average unit contribution margin, assuming a constant sales mix.

b) How many units of each printer must be sold to break even?

c) i) Explain what is margin of safety.

ii) Calculate in sales units the margin of safety for IPM, assuming projected sales are 25,000 units?

Reference no: EM132714288

Questions Cloud

Estimate the minimum annual cash flow : The discount rate is 7.8 percent. Estimate the minimum annual cash flow required to accept the project?
What is the new price immediately before the company : If one year later, the yield to maturity on the bond increases to 6%, what is the new price immediately before the company makes the second coupon payment?
Find today value of occ corporate bond and common stock : Find today's value of OCC's corporate bond and common stock. What is the promised yield to maturity of the corporate bond equal to?
Compute how much must invest at the end of each year : Find how much must you invest at the end of each year if the first deposit is made at the end of the first year? If you wish to accumulate $250,000
Calculate the weighted average unit contribution margin : Total annual fixed costs are $5,000,000. Assume the sales mix remains the same at all levels of sales. Calculate the weighted average unit contribution margin
How does her culture play a role into her nursing care : During a home visit for a 72-year-old Asian woman, the home health nurse notices that her prescription medications for hypertension and diabetes are untouched.
What is the expected rate of return to equity holders : The firm's WACC is 11.36% and debt-asset ratio is 60%. What is the expected rate of return to equity holders?
Find what strategic motives were perhaps fueling facebook : Find what is or is not in WhatsApp's 2013 year-end financial statements that would have been appealing to a prospective acquirer?
How do business finance companies assist people in financing : a) How do business finance companies assist people in financing?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd