Solution-Compute weighted average unit contribution margin

Compute weighted average unit contribution margin

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Reference no: EM132714869

Question - International Printer Machines (IPM) builds three computer printer models: Alpha, Beta, and Gamma. Information for these three products is as follows: Alpha Beta Gamma Total Selling price per unit $250 $400 $1 500. Variable cost per unit $80 $200 $800 Expected unit sales (annual) 12,000 6,000 2,000 total 20,000 Sales mix 50 percent 40 percent 10 percent total100 percent

Total annual fixed costs are $5,000,000. Assume the sales mix remains the same at all levels of sales.

Required -

a) Compute weighted average unit contribution margin, assuming a constant sales mix.

b) How many units of each printer must be sold to break even?

c) i) Explain what is margin of safety.

ii) Calculate in sales units the margin of safety for IPM, assuming projected sales are 25,000 units?

Reference no: EM132714869

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Compute weighted average unit contribution margin

Reference no: EM132714869

Reference no: EM132714869

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