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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
Horngren's Accounting: The Managerial Chapters (12th Edition) (loose Leaf Version)
- GT Industries purchased a truck on January 1, 2019. GT paid $30,000 for the truck. The truck is expected to have a $3,000 residual value and a 6-year life. GT has a December 31 fiscal year-end. Using the straight-line method, how much is the 2020 depreciation expense? provide answerarrow_forwardEnd informationarrow_forwardGeneral Accountingarrow_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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