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 priceVariable 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 margineTextbook and MediaBooks$93Find 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)MoviesMagazineseTextbook and MediaMovies$14* Your answer is incorrect.9Determine how many units from each product category Metlock must sell to break even. (Round answers to O decimals, e.g. 15.)BooksMoviesMagazinesMagazines2160 units2160 units1080 units$511200 unitsMetlock normally sells 3,000 books each month. Given the current sales mix, how many movies and magazines must it normallysell in a month?1200 units600 units5.2 per unitAttempts: unlimitedAttempts: unlimited

One of the main components for the purpose of determining the break-even units is the contribution…

Answered: Metlock sells books, movies, and…

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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Last month when Holiday Creations, Incorporated, sold 41,000 units, total sales were $164,000, total variable expenses were $116,440, and fixed expenses were $38,600. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase sales volume by 600 units and total sales by $2,400? (Do not round intermediate calculations.)
I need help with parts 1 and 2

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