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Question - Cal Cul makes two types of calculators - scientific and financial. The scientific cost about twice the price of the financial. The statistics are as follows:
Sales price
Cost price/unit
Units sold
Scientific
$70
$40
25,000
Financial
40
25
50,000
The fixed costs for the company are $50,000.
a) What is the contribution margin for each type of calculator?
b) What is the sales mix by sales volume and by unit?
c) What is the weighted-average unit contribution?
d) What is the break-even in sales? How much of each unit would be sold, assuming a constant sales mix?
e) If the company wants to make 25,000 in profits, how much of each must they sell?
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