Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: Percentage Contribution of Unit Margin per Lens A Lens B Lens C Sales 23% 39 38 Unit $.43 35 48 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 $190,000. 3. Determine how many units of each product must be sold to generate a profit of $77,000.
Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: Percentage Contribution of Unit Margin per Lens A Lens B Lens C Sales 23% 39 38 Unit $.43 35 48 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 $190,000. 3. Determine how many units of each product must be sold to generate a profit of $77,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow.
Percentage Contribution
of Unit
Margin per
Lens A
Lens B
Lens C
Sales
23%
39
38
Required 1
Unit
$ 43
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 $190,000.
3. Determine how many units of each product must be sold to generate a profit of $77,000.
Complete this question by entering your answers in the tabs below.
Units of Lens A
Units of Lens B
Units of Lens C
35
48
Required 2 Required 3
Determine how many units of each product must be sold to generate a profit of $77,000.
Note: Round your intermediate calculations to nearest whole number. Round your answers up to the next whole number.
Round weighted-average contribution margin per unit to 2 decimal places.
Units
Units
Units
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