Malibu, Inc., which has fixed costs of $2,965,000, sells three products whose sales price, variable cost per unit, and percentage of sales units are presented in the table below. Sales Price $8.00 Variable Cost $4.00 Sales Mix Product A a. b. 50% Product B $16.00 $6.00 30% Product C $31.00 $17.00 20% What is the weighted average unit contribution margin? (Round your answer to 2 decimal places.) At the break-even point, how many units of Product A must be sold? (Round intermediate calculations to 2 decimal places. Round your answer to the nearest whole number.) To make a profit of $1,124,000, how many units of Product B must be sold? (Round intermediate

Malibu, Inc., which has fixed costs of $2,965,000, sells three products whose sales price, variable cost per unit, and percentage of sales units are presented in the table below. Sales Price $8.00 Variable Cost $4.00 Sales Mix Product A a. b. 50% Product B $16.00 $6.00 30% Product C $31.00 $17.00 20% What is the weighted average unit contribution margin? (Round your answer to 2 decimal places.) At the break-even point, how many units of Product A must be sold? (Round intermediate calculations to 2 decimal places. Round your answer to the nearest whole number.) To make a profit of $1,124,000, how many units of Product B must be sold? (Round intermediate

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 46E: Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is...

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Malibu, Inc., which has fixed costs of $2,965,000, sells three
products whose sales price, variable cost per unit, and
percentage of sales units are presented in the table below.
Sales Price
Sales Mix
Variable Cost $4.00
a.
b.
Product A
C.
$8.00
50%
Product B
$16.00
$6.00
30%
Product C
$31.00
$17.00
20%
What is the weighted average unit contribution
margin? (Round your answer to 2 decimal places.)
At the break-even point, how many units of
Product A must be sold? (Round intermediate
calculations to 2 decimal places. Round your
answer to the nearest whole number.)
To make a profit of $1,124,000, how many units of
Product B must be sold? (Round intermediate
calculations to 2 decimal places. Round your
answer to the nearest whole number.)

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Step 1: Introduce to break even point

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Step 2: Working for weighted average contribution margin per unit

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Step 3: Working for Break Even Point

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Step 4: Working for required units sold for desired profit of $1,124,000

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