In: Accounting
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Answer a.
Weighted Average Unit Contribution Margin = 0.32 * $47.00 + 0.44
* $23.00 + 0.24 * $37.00
Weighted Average Unit Contribution Margin = $34.04
Answer b.
Breakeven Point = Fixed Costs / Weighted Average Unit
Contribution Margin
Breakeven Point = $653,568 / $34.04
Breakeven Point = 19,200 units
Answer c.
Breakeven Point for Shoes = 0.32 * 19,200
Breakeven Point for Shoes = 6,144 units
Breakeven Point for Gloves = 0.44 * 19,200
Breakeven Point for Gloves = 8,448 units
Breakeven Point for Range-Finder = 0.24 * 19,200
Breakeven Point for Range-Finder = 4,608 units
Answer d.
Variable Costs - Shoes (6,144 * $58) = $356,352
Variable Costs - Gloves (8,448 * $10) = $84,480
Variable Costs - Range-Finders (4,608 * $205) = $944,640
Total Variable Costs = $356,352 + $84,480 + $944,640
Total Variable Costs = $1,385,472