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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?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92748709

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