Max Company manufactures and sells three products: Good, Better, and Best. Annual fixed costs are $6,555,000, and data about the three products follow. Sales mix in units Selling price Variable cost A. Weighted-average CM B. Break-even volume: Good Good Better Best C. Total number of units 30% $ 430 190 Better units units units units 50% $530 240 Best Required: A. Determine the weighted-average unit contribution margin. B. Determine the break-even volume in units for each product. C. Determine the total number of units that must be sold to obtain a profit for the company of $456,000. 20% $ 680 340
Max Company manufactures and sells three products: Good, Better, and Best. Annual fixed costs are $6,555,000, and data about the three products follow. Sales mix in units Selling price Variable cost A. Weighted-average CM B. Break-even volume: Good Good Better Best C. Total number of units 30% $ 430 190 Better units units units units 50% $530 240 Best Required: A. Determine the weighted-average unit contribution margin. B. Determine the break-even volume in units for each product. C. Determine the total number of units that must be sold to obtain a profit for the company of $456,000. 20% $ 680 340
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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jagdish
Transcribed Image Text:Max Company manufactures and sells three products: Good, Better, and Best. Annual fixed costs are $6,555,000,
and data about the three products follow.
Sales mix in units
Selling price
Variable cost
Good
A. Weighted-average CM
B. Break-even volume:
Good
Better
Best
C. Total number of units
30%
$ 430
190
Better
units
units
units
units
50%
$530
240
Best
Required:
A. Determine the weighted-average unit contribution margin.
B. Determine the break-even volume in units for each product.
C. Determine the total number of units that must be sold to obtain a profit for the company of $456,000.
20%
$ 680
340
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