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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Horngren's Accounting: The Managerial Chapters, Student Value Edition (12th Edition)
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