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Determine the weighted-average unit contribution margin

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Reference no: EM132566715

My Audio Delivery Systems has a Sales mix of speakers which are Subwoofers, Electrostatic and Planar-magnetic. The company's details are as follows.

Annual expected sales :

Sales of Subwoofers: 380,000 units at $28.50; S

ale of Electrostatic: 1,450,000 units at $15.20;

Sale of Planar- magnetic: 170,000 units at $46.00

Variable manufacturing cost per unit

Subwoofers: $13.96.

Electrostatic: $7.95,

Planar-magnetic: $29.75

Fixed manufacturing over head cost total: $680,000

Variable selling and administrative expenses per unit:

Subwoofers: $1.30.

Electrostatic: $0.50 ,

Planar-magnetic: $3.41

Fixed selling and administrative expenses total: $1,600,000

Question (1) Determine the sales mix based on unit sales for each product.

Question (2) Using the annual expected sales for these products, determine the weighted-average unit contribution margin for these three products. lets assume the sales mix remains the same, what is the break even in units for these products

Reference no: EM132566715

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