2. WonderFood is a multi-product company that makes three types of cereal. The company has fixed costs of $100, 000 per annum. Compute the following: (a) the separate contribution margin ratio for each product (b) the weighted-average contribution margin ratio of the company as a whole (c)the breakeven distribution of products. The following table shows the sales price, variable cost per unit and units sold of each product: Type 1 $5 Type 2 $7.50 Type 3 $9 Variable Cost per Unit Price per Unit Unit Sold $10 2000 $13 1500 $15 1300

2. WonderFood is a multi-product company that makes three types of cereal. The company has fixed costs of $100, 000 per annum. Compute the following: (a) the separate contribution margin ratio for each product (b) the weighted-average contribution margin ratio of the company as a whole (c)the breakeven distribution of products. The following table shows the sales price, variable cost per unit and units sold of each product: Type 1 $5 Type 2 $7.50 Type 3 $9 Variable Cost per Unit Price per Unit Unit Sold $10 2000 $13 1500 $15 1300

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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