Reference no: EM132663536
The Double Arthur Company (DAC) has three product lines of coffee mugs - Earth, Sun and Mun - with contribution margins of 11, 9, and 7 respectively. The president Maxat Jexembay foresees sales, consisting of 59857 units of Earth, 123602 units of Sun, and 99172 units of Mun. The company's fixed costs for the period are 556708.
Required:
Problem 1. What is the the company's average contribution margin for given sales mix?
Problem 2. What is the breakeven in units, assuming that the given sales mix is maintained?
Problem 3. What is the breakeven point in units for Earth for the given sales mix?
Problem 4. What is the breakeven point in units for Sun for the given sales mix?
Problem 5. What is the breakeven point in units for Mun for the given sales mix?
Problem 6. If the sales mix is maintained, what is the total contribution margin when 220,000 units are sold?
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