Solution-Determine the weighted-average unit contribution

Determine the weighted-average unit contribution margin

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Reference no: EM13889118

Snow Cap Springs produces and sells water filtration systems for homeowners.

Information regarding its three models is shown below.

	Basic	Basic Plus	Premium	Total
Units sold	750	450	300	1,500
Selling price	$250	$400	$800
Variable costs	$195	$288	$416

The company's total fixed costs to produce the filtration systems are $165,480.

(a) Determine the sales mix as a function of units sold for the three products.

(b) Determine the weighted-average unit contribution margin.

(d) Determine the number of units of each model that the company must produce to break even.

Reference no: EM13889118

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Determine the weighted-average unit contribution margin

Reference no: EM13889118

Reference no: EM13889118

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