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

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

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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