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 24 % $ 34 Lens B 43 26 Lens C 33 39 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 $70,000.
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 24 % $ 34 Lens B 43 26 Lens C 33 39 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 $70,000.
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 | 24 | % | $ | 34 |
| Lens B | 43 | 26 | ||
| Lens C | 33 | 39 | ||
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 $70,000.
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