Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: Lens A Percentage of Unit sales 26% Lens B 41 Lens C 33 Contribution Margin per unit $50 42 55 Required: 1. Determine the weighted-average contribution margin per unit. 2. Determine the number of units of each product that Tiago must sell to break even if fixed costs are $195,000. 3. Determine how many units of each product must be sold to generate a profit of $65,000. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the weighted-average contribution margin per unit. (Round your intermediate calculations and final answer to 2 decimal places.) Weighted Average CM per unit < Required 1 Required 2 >
Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: Lens A Percentage of Unit sales 26% Lens B 41 Lens C 33 Contribution Margin per unit $50 42 55 Required: 1. Determine the weighted-average contribution margin per unit. 2. Determine the number of units of each product that Tiago must sell to break even if fixed costs are $195,000. 3. Determine how many units of each product must be sold to generate a profit of $65,000. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the weighted-average contribution margin per unit. (Round your intermediate calculations and final answer to 2 decimal places.) Weighted Average CM per unit < Required 1 Required 2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow:
Lens A
Percentage of Unit
sales
26%
Lens B
41
Lens C
33
Contribution Margin per
unit
$50
42
55
Required:
1. Determine the weighted-average contribution margin per unit.
2. Determine the number of units of each product that Tiago must sell to break even if fixed costs are $195,000.
3. Determine how many units of each product must be sold to generate a profit of $65,000.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Required 3
Determine the weighted-average contribution margin per unit. (Round your intermediate calculations and final answer to 2
decimal places.)
Weighted Average CM
per unit
<Required 1
Required 2 >
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Step 1: CVP analysis in a multi-product environment
VIEWStep 2: Answer 1. Weighted-average contribution margin per unit
VIEWStep 3: Answer 2. Number of units of each product to be sold at break-even point
VIEWStep 4: Answer 3. Number of units of each product to be sold to generate target profit of $65,000
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