Calculate the weighted average unit contribution margin

Assignment Help Managerial Accounting
Reference no: EM132747930

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 percent

40 percent

10 percent

100 percent

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: EM132747930

Questions Cloud

Transformation at ing-blockchain : Describe how the Company Proposition changed as a result of the Digital Transformation
How to restore the credibility of the accounting profession : How to restore the credibility of the accounting profession and investor confidence in the financial reporting process? The response must be typed.
Design a dynamic programming algorithm : Design a dynamic programming algorithm to find the value of the optimal plan. Implement your algorithm using any programming language you prefer.
Best corporate governance practices : Attempt it with due diligence: "Best Corporate Governance Practices, for all intent and purposes rest on the shoulders of Independent Non-Executive Directors"
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
Bobsville hazard vulnerability assessment : In EDMG101, the 2nd assignment which is due in the 3rd week the Bobsville Hazard Vulnerability Assessment.
Promote organizational performance : In what ways do goals and objectives help managers control various processes within an organization?
Achieve advantage over competitors : Explain how Apple company leverages knowledge management processes
Importance for a union in a public school : What is the importance for having a union in a public school?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Calculate the internal rate of return from the information

Use the financial formulas, Net Present Value (NPV), Internal Rate of Return (IRR), and Payback, how can calculate from the information in this document?

  Compute the dollar amount of dividends

Use this information to determine for 2018 the dollar amount of dividends that will be distributed per Common Share. Round answer to closest cent

  Compute the direct labor rate variance for javonte co

Compute the direct labor rate variance. the direct labor efficiency variance. and the total direct labor cost variance for each ofthese two months.

  Determine the assignment of costs to costs of goods

Determine the equivalent units of production and the unit costs for the Assembly Department and determine the assignment of costs to costs of goods transferred out and in process.

  Develop a revenue budget for the upcoming academic year

develop a revenue budget for the upcoming academic year. South Hampton University is preparing its budget for the upcoming academic year.

  What was the cost of direct materials used in january

What amount of work in process inventory was transferred out to finished goods during January? What was the cost of direct materials used in January?

  Explain that under the ifac standards informal advice

Explain that under the Code of Ethics you cannot give advice on MAS areas at the same time you are doing an audit. Explain that under IFAC Standards informal

  How could exploit nike apparent vulnerability

If you are a competitor of Nike (such as Adidas, Under Armor, New Balance, o rLi-Ning), how could you exploit Nike's apparent vulnerability?

  Explain smoky mountain corporation makes two types

Smoky mountain Corporation makes two types of hiking boots the extreme in the Pathfinder data concerning these two product lines. Explain in detail.

  Ramifications of price discrimination

Thomas Selling, an expert on nuclear strategy and arms control, examined in his book The Strategy of Conflict (Cambridge, MA: Harvard University Press, 1960), " The power to constrain the adversary depends on the power to bind oneself." Describe t..

  The following two responses are required for each item

During 2011, $20,000 of bonds payable were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium.

  Calculate the price and efficiency variances for labour

Standard cost per kg $12. Calculate the price and efficiency variances for materials and labour and the total direct labour variance for June.

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