Current monthly average unit contribution margin

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Reference no: EM13823372

Assume the M furniture company sells two kinds of picnic tables. Pine and redwood. At a 2:1 unit sales mix in which M company sell two pine tables for every redwood table. The following revenue and cost information is available

Pine Table Redwood Table

Unit selling price $400 $1200

Unit variable costs $250 $ 600

Unit contribution margin $150 $ 600

Fixed Costs per month: $18,000

Assuming a 2:1 sales mix. Calculate the following numbers:

A. Current monthly average unit contribution margin?

B. The break-even in units?

C. The number of Pine and Redwood tables sold at the break-even point- i.e how many pine tables and how many redwood tables will be sold at break even?

Reference no: EM13823372

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