International Printer Machines (IPM) builds three computer printer models: Alpha, Beta, andGamma. Information for these three products is as follows:AlphaBetaGammaTotalSelling price per unit$250$400$1 500Variable cost per unit$80$200$800Expected unit sales (annual) 12,0006,0002,00020,000Sales mix50 percent 40 percent 10 percent 100 percentTotal annual fixed costs are $5,000,000. Assume the sales mix remains the same at all levelsof sales.Required:a) Calculate the weighted average unit contribution margin, assuming a constant sales mix.b) How many units of each printer must be sold to break even?c) ) Explain what is margin of safety.i) Calculate in sales units the margin of safety for IPM, assuming projected sales are25,000 units?

The Numerical has covered the concept of Break-Even Point and Margin of Safety.The Break-Even Point…

Answered: International Printer Machines (IPM)…

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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