Compute the contribution margin per unit

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Reference no: EM132083326

Question: WaterSports USA sells three types of wake boards. Information relative to sales in units and dollars are given below.

	Wakeman	Jumper	Novice	Total
Sales in Units	1,000	5,000	2,000	8,000
Price per Unit	$200	$150	$100
Variable cost per Unit	$150	$100	$50

Fixed costs are projected to be $100,000. Carry all calculations to four decimal places.

Required: Compute the contribution margin per unit.

Compute the weighted contribution margin.

Compute the break-even in total units.

Compute the break-even per product.

Discuss briefly the usefulness of the computation in the business world.

Reference no: EM132083326

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