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Belle Company manufactures and sells three products: Products A, B, and C. The following data has beenprovided the company.Particulars:ABCSelling Price($)10012050Variable Cost per unit($)6090* 40Contribution Margin per unit ($)403010Contribution Margin (PV) ratio40%25%20%The company sells 5 units of C for every unit of A and 2 units of B for every unit of A. Hence, the sales mix is 1:2:5.The company incurred in $120,000 total fixed costs. What will be the Break Even Point per unit and Weighted AverageContribution Margin (CM) per unit?ans.b) 6,400 units and $18.75d) 6,350 units and $18.76c) 6,450 units and $18.73a) 6,500 units and $18.76 |
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