Type 2 Type 3 Type 1 P250 P375 P450 P500 P600 P750 2050 1500 1300 a. Calculate the separate contribution margin ratio for each product b. Calculate the weighted-average contribution margin ratio of the company as a whole. c. If the company's fixed costs are P41,700 per month, calculate the breakeven distribution of products. Variable Cost per Unit Price per Unit Unit Sold
Type 2 Type 3 Type 1 P250 P375 P450 P500 P600 P750 2050 1500 1300 a. Calculate the separate contribution margin ratio for each product b. Calculate the weighted-average contribution margin ratio of the company as a whole. c. If the company's fixed costs are P41,700 per month, calculate the breakeven distribution of products. Variable Cost per Unit Price per Unit Unit Sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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WonderFood is a multi-product company that makes three types of cereal. Following table shows a one-month sales of each product:
![Type 1
Type 2
Type 3
P250
P375
P450
P500
P600
P750
2050
1500
1300
a. Calculate the separate contribution margin ratio for each product
b. Calculate the weighted-average contribution margin ratio of the company
as a whole.
c. If the company's fixed costs are P41,700 per month, calculate the breakeven
distribution of products.
d. Prepare an income statement by the type of cereal at the end of the month
Variable Cost
per Unit
Price per Unit
Unit Sold](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2236383b-498f-400c-a5c6-0a9d48a9f6c4%2F7f86c86e-96b2-433d-9fe5-07bfea25b424%2Fmo9625l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Type 1
Type 2
Type 3
P250
P375
P450
P500
P600
P750
2050
1500
1300
a. Calculate the separate contribution margin ratio for each product
b. Calculate the weighted-average contribution margin ratio of the company
as a whole.
c. If the company's fixed costs are P41,700 per month, calculate the breakeven
distribution of products.
d. Prepare an income statement by the type of cereal at the end of the month
Variable Cost
per Unit
Price per Unit
Unit Sold
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