Question 3 Part A RDX also manufactures decorative coloured outdoor tiles. It has fixed costs of $749,100. RDX's sales mix, and contribution margin per box of tiles are shown below: Product Type Red Brown Green Sales Mix Contribution Margin per crate $130 $120 $70 35% 45% 20% Required: a. Based on the current sales mix, compute the weighted average contribution margin per crate. b. Compute the number of each type of coloured stone that the company would need to sell in order to break even under this product mix.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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step by step please. parts a-b

Question 3
Part A
RDX also manufactures decorative coloured outdoor tiles. It has fixed costs of $749,100. RDX's sales mix,
and contribution margin per box of tiles are shown below:
Product Type
Red
Brown
Green
Sales Mix Contribution Margin per crate
$130
$120
$70
35%
45%
20%
Required:
a. Based on the current sales mix, compute the weighted average contribution margin per crate.
b. Compute the number of each type of coloured stone that the company would need to sell in order
to break even under this product mix.
Transcribed Image Text:Question 3 Part A RDX also manufactures decorative coloured outdoor tiles. It has fixed costs of $749,100. RDX's sales mix, and contribution margin per box of tiles are shown below: Product Type Red Brown Green Sales Mix Contribution Margin per crate $130 $120 $70 35% 45% 20% Required: a. Based on the current sales mix, compute the weighted average contribution margin per crate. b. Compute the number of each type of coloured stone that the company would need to sell in order to break even under this product mix.
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