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Weighted Average contribution margin:
The weighted average contribution margin is calculated for two or more products sharing a common fixed cost. The formula to calculate the Weighted Average contribution margin per unit is as follows:
Breakeven Point for two products:
The Breakeven point is the level of sales at which the net profit is nil. It can be explained as a situation where the business is generating a sale that is equal to the expenses incurred and hence no
1. Weighted average contribution margin per unit:
To determine:
The Weighted average contribution margin per unit
2. Breakeven units:
To determine:
The total number of units of sales to breakeven
3. Breakeven units for each product:
To determine:
The total number of units of sales for each product separately
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Chapter 21 Solutions
Myaccountinglab With Pearson Etext -- Access Card -- For Horngren's Accounting, The Managerial Chapters
- NO WRONG ANSWERarrow_forwardAnjali Brewery has estimated budgeted costs of $72,600, $78,900, and $85,200 for the manufacture of 4,000, 5,000, and 6,000 gallons of beer, respectively, next quarter. What are the variable and fixed manufacturing costs in the flexible budget for Anjali Brewery? Answerarrow_forwardCalculate the labor variancearrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
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