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Compute the weighted contribution margin percentage

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Question - Cagayan Company sells three products. Planned results for next year are as follows: A B C Unit Selling Price P10 P8 P4 Unit Variable Costs P4 P6 P1 Sales Mix in pesos 25% 25% 50% Total Fixed Costs P500,000

Required -

1. Compute the weighted contribution margin percentage.

2. Compute the sales in pesos required to earn a P100,000 profit.

3. Supposed now that the sales mix, in units, is 25%, 25%, 50%. Determine the weighted contribution margin per unit.

4. Determine the total unit sales needed to earn a P100,000 profit.

Reference no: EM132624268

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