What is the contribution margin for each type of calculator

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Reference no: EM131190917

Question - Cal Cul makes two types of calculators - scientific and financial. The scientific cost about twice the price of the financial. The statistics are as follows:

	Sales price	Cost price/unit	Units sold
Scientific	$70	$40	25,000
Financial	40	25	50,000

The fixed costs for the company are $50,000.

a) What is the contribution margin for each type of calculator?

b) What is the sales mix by sales volume and by unit?

c) What is the weighted-average unit contribution?

d) What is the break-even in sales? How much of each unit would be sold, assuming a constant sales mix?

e) If the company wants to make 25,000 in profits, how much of each must they sell?

Reference no: EM131190917

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