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Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow:     Percentage of Unit sales Contribution Margin per unit Lens A 21 % $ 48 Lens B 44     40 Lens C 35     53     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 $185,000. 3. Determine how many units of each product must be sold to generate a profit of $78,000.

Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow:     Percentage of Unit sales Contribution Margin per unit Lens A 21 % $ 48 Lens B 44     40 Lens C 35     53     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 $185,000. 3. Determine how many units of each product must be sold to generate a profit of $78,000.

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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Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow:

 

  Percentage of Unit sales Contribution Margin per unit
Lens A 21 % $ 48
Lens B 44     40
Lens C 35     53
 

 

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 $185,000.

3. Determine how many units of each product must be sold to generate a profit of $78,000.

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