Metlock sells books, movies, and magazines to a wide customer base. In a typical month, about 40% of its sales volume is from books, 40% from movies, and 20% from magazines. The selling price and cost information for each of these product categories is as follows. Selling price Variable cost/unit (a) In addition, Metlock incurs facility and administrative costs that average $28,080 per month. (b) ✓ Your answer is correct. Weighted-average contribution margin Find the weighted-average contribution margin per unit for this company. (Round answer to 2 decimal places, e.g. 15.25.) Books Movies $9 $14 eTextbook and Media Books (c) 39 ✓ Your answer is correct. Movies Magazines Determine how many units from each product category Metlock must sell to break even. (Round answers to O decimals, e.g. 15.) eTextbook and Medial * Your answer is incorrect. Books Magazines Movies Magazines 2160 units 2160 units 1080 units $5 1 Metlock normally sells 3,000 books each month. Given the current sales mix, how many movies and magazines must it normally sell in a month? 1200 units 1200 units 5.2 per unit 600 units Attempts: unlimited Attempts: unlimited

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Metlock sells books, movies, and magazines to a wide customer base. In a typical month, about 40% of its sales volume is from books,
40% from movies, and 20% from magazines. The selling price and cost information for each of these product categories is as follows.
Selling price
Variable cost/unit
(a)
(b)
✓ Your answer is correct.
In addition, Metlock incurs facility and administrative costs that average $28,080 per month.
Weighted-average contribution margin
eTextbook and Media
Books
$9
3
Find the weighted-average contribution margin per unit for this company. (Round answer to 2 decimal places, e.g. 15.25.)
✓ Your answer is correct.
Books
(c)
Movies
Magazines
eTextbook and Media
Movies
$14
* Your answer is incorrect.
9
Determine how many units from each product category Metlock must sell to break even. (Round answers to O decimals, e.g. 15.)
Books
Movies
Magazines
Magazines
2160 units
2160 units
1080 units
$5
1
1200 units
Metlock normally sells 3,000 books each month. Given the current sales mix, how many movies and magazines must it normally
sell in a month?
1200 units
600 units
5.2 per unit
Attempts: unlimited
Attempts: unlimited
Transcribed Image Text:Metlock sells books, movies, and magazines to a wide customer base. In a typical month, about 40% of its sales volume is from books, 40% from movies, and 20% from magazines. The selling price and cost information for each of these product categories is as follows. Selling price Variable cost/unit (a) (b) ✓ Your answer is correct. In addition, Metlock incurs facility and administrative costs that average $28,080 per month. Weighted-average contribution margin eTextbook and Media Books $9 3 Find the weighted-average contribution margin per unit for this company. (Round answer to 2 decimal places, e.g. 15.25.) ✓ Your answer is correct. Books (c) Movies Magazines eTextbook and Media Movies $14 * Your answer is incorrect. 9 Determine how many units from each product category Metlock must sell to break even. (Round answers to O decimals, e.g. 15.) Books Movies Magazines Magazines 2160 units 2160 units 1080 units $5 1 1200 units Metlock normally sells 3,000 books each month. Given the current sales mix, how many movies and magazines must it normally sell in a month? 1200 units 600 units 5.2 per unit Attempts: unlimited Attempts: unlimited
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