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How do determine the weighted contribution margin per unit

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Reference no: EM132624621

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:

Question 1. Compute the weighted contribution margin percentage.

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

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

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

Reference no: EM132624621

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