Compute what is weighted average unit contribution margin

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Reference no: EM131910043

Problem

Malibu, Inc., which has fixed costs of $2,966,000, sells three products whose sales price, variable cost per unit, and percentage of sales units are presented in the table below.

	Product A	Product B	Product C
Sales Price	$9.00	$14.00	$32.00
Variable Cost	$4.00	$7.00	$20.00
Sales Mix	55%	20%	25%

a. What is the weighted average unit contribution margin?

b. At the break-even point, how many units of Product A must be sold?

c. To make a profit of $1,124,000, how many units of Product B must be sold?

Reference no: EM131910043

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