Switch Manufacturing Co. builds and sells switch harnesses for glove boxes. The sales price and variable cost for each follows: Trunk switch selling price per unit= $60. variable cost per unit= $28 Gas door switch selling price per unit= $75. variable cost per unit= $33 glove box light. selling price per unit= $40. variable cost per unit= $22 Their sales mix is reflected in the ratio 4:4:1. What is the overall unit contribution margin for Switch Manufacturing Co. with their current product mix? If annual fixed costs shared by the three products are $18,840 how many units of each product will need to be sold in order for Switch Manufacturing to break even?
Switch Manufacturing Co. builds and sells switch harnesses for glove boxes. The sales price and variable cost for each follows:
Trunk switch selling price per unit= $60. variable cost per unit= $28
Gas door switch selling price per unit= $75. variable cost per unit= $33
glove box light. selling price per unit= $40. variable cost per unit= $22
Their sales mix is reflected in the ratio 4:4:1.
What is the overall unit contribution margin for Switch Manufacturing Co. with their current product mix?
If annual fixed costs shared by the three products are $18,840 how many units of each product will need to be sold in order for Switch Manufacturing to break even?
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| Calculation Aid | |||||||||||
| Product | Sales Price | VC per Unit | CM per Unit | Ratio (Mix) | $ | ||||||
| Trunk Switch | |||||||||||
| Gas Door Switch | $459.00 | $7,859.00 | 3uhr | hv | |||||||
| Glove Box Light | $7,569.00 | hgrg3 | |||||||||
| Overall Unit Contribution Margin | 67 | ||||||||||
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