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Determine the weighted contribution margin per unit

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Reference no: EM132541628

Cagayan Company sells three products. Planned results for next year are as follows:

                                      A                  B                C

Unit Selling Price                 P10            P8             P4

Unit Variable Costs                P4             P6             P1

Sales Mix in pesos                  25%          25%           50%

Total Fixed Costs P500,000

Required:

Question 1. Compute the weighted contribution margin percentage.

Question 2. Compute the sales in pesos required to earn a P100,000 profit.

Question 3. Supposed now that the sales mix, in units, is 25%, 25%, 50%. Determine the weighted contribution margin per unit.

Question 4. Determine the total unit sales needed to earn a P100,000 profit.

Reference no: EM132541628

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