Containers International decides to sell Small containers only, calculate the break-even point in units. 2. Calculate the total weighted average contribution margin per unit if Containers International sells its products based on the sales mix of 70% Large containers and 30% Small containers. 3. Based on the sales mix of 70% Large containers and 30% Small containers, calculate the total number of units for Containers International to break even. 4. If variable costs rise by 10%, calculate the breakeven point in units, assuming Containers International sells only the Small container
Containers International decides to sell Small containers only, calculate the break-even point in units. 2. Calculate the total weighted average contribution margin per unit if Containers International sells its products based on the sales mix of 70% Large containers and 30% Small containers. 3. Based on the sales mix of 70% Large containers and 30% Small containers, calculate the total number of units for Containers International to break even. 4. If variable costs rise by 10%, calculate the breakeven point in units, assuming Containers International sells only the Small container
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Containers International decides to sell Small containers only, calculate the break-even point in units.
2. Calculate the total weighted average contribution margin per unit if Containers International sells its products based on the sales mix of 70% Large containers and 30% Small containers.
3. Based on the sales mix of 70% Large containers and 30% Small containers, calculate the total number of units for Containers International to break even.
4. If variable costs rise by 10%, calculate the breakeven point in units, assuming Containers International sells only the Small container
Transcribed Image Text:Containers International produces two types of shipping containers Small and Large. The following
information is available related to each product:
Small
Large
$2,600
$3,600
Sales price per unit
Variable costs per unit
$600
$800
The Large containers account for 70% of total product sales and the Small container accounts for
the rest.
Containers International's fixed costs are rent ($100,000) and salaries ($470,000).
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