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Mountain Technical manufactures mountaineering tents. It has fixed costs of $8,280,000. Mountain Technical's unit cost and sales data is shown as follows:                                                                             Ranier               Shasta            Whitney                                                                             Model               Model             Model                         Unit sales price                           $300                 $400               $500                         Unit variable costs                      $260                 $340               $380                         Units sold                                  48,000               72,000          40,000 What is the weighted-average unit contribution margin? A. $220 B. $57

Mountain Technical manufactures mountaineering tents. It has fixed costs of $8,280,000. Mountain Technical's unit cost and sales data is shown as follows:                                                                             Ranier               Shasta            Whitney                                                                             Model               Model             Model                         Unit sales price                           $300                 $400               $500                         Unit variable costs                      $260                 $340               $380                         Units sold                                  48,000               72,000          40,000 What is the weighted-average unit contribution margin? A. $220 B. $57

FINANCIAL ACCOUNTING
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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Mountain Technical manufactures mountaineering tents. It has fixed costs of $8,280,000. Mountain Technical's unit cost and sales data is shown as follows:

                                                                            Ranier               Shasta            Whitney

                                                                            Model               Model             Model

                        Unit sales price                           $300                 $400               $500

                        Unit variable costs                      $260                 $340               $380

                        Units sold                                  48,000               72,000          40,000

What is the weighted-average unit contribution margin?

A. $220
B. $57
C. $73
D. $69

Determine the number of units of each model that the company must sell to break even:

Group of answer choices
A. Ranier - 36,000 units; Shasta - 54,000 units; Whitney – 30,000 units
B. Ranier - 48,000 units; Shasta - 72,000 units; Whitney – 40,000 units
C. Ranier- 44,000 units; Shasta - 80,000 units; Whitney – 36,000 units
D. Ranier - 40,000 units; Shasta - 40,000 units; Whitney – 40,000 units
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