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What is the weighted average unit contribution margin

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Question - A spa offers three membership programs platinum, gold and silver. The spa incurs annual fixed costs of $19,200,000.

 

Platinum

Gold

Silver

Memberships sold

30,000

150,000

120,000

Membership price

2,500

1,000

800

Variable cost per membership

1,000

500

200

Required -

1. What is the weighted average unit contribution margin?

2. Assuming the sales of mix memberships remains constant, what is the total number of memberships that the company must sell to break even?

3. What is the breakeven point (in memberships) for the gold company?

Reference no: EM132514696

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