Question

In: Accounting

BBC Builders Inc. produces three products: A, B, and C. The following information is presented for...

BBC Builders Inc. produces three products: A, B, and C. The following information is presented for the three products:
Calculate the contribution margin for each product
Calculate the break-even point in units of the three products A, B, and C combination based on the sales mix percentaage
Fixed Cost $321,000
Product A Product B Product C
Price Per Unit $40 $34 $20
Variable Cost Per Unit $25 $20 $6
Contribution Margin Per Unit
Product Mix 30% 20% 50% 100%
Weighted Average Price $12.00 $6.80 $10.00
Weighed Average Cost $7.50 $4.00 $3.00
WA Contribution Margin
BE in Units(Roudup to Integer)

Solutions

Expert Solution

Above figures have been calculated in the following manner:


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