Compute the total unit sales required to earn

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CRANMORE Company sells three products. Planned results are as follows.

                                            Product

                                                      P             Q            R

Selling price                           P20         P8        P6

Variable cost                            8            6       3

Contribution margin                 P12           P2        P3

Units sold                               10,000   20,000   70,000

Fixed costs are P296,000.

Question a. Determine the weighted-average contribution-margin per unit.

Question b. Determine the number of units to be sold for each product at break-even point.

Question c. Compute the total unit sales required to earn an after-tax P105,000 profit.30% tax rate is to be assumed.

Reference no: EM132634504

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