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Question: WaterSports USA sells three types of wake boards. Information relative to sales in units and dollars are given below.


Wakeman

Jumper

Novice

Total

Sales in Units

1,000

5,000

2,000

8,000

Price per Unit

$200

$150

$100


Variable cost per Unit

$150

$100

$50


Fixed costs are projected to be $100,000. Carry all calculations to four decimal places.

Required: Compute the contribution margin per unit.

Compute the weighted contribution margin.

Compute the break-even in total units.

Compute the break-even per product.

Discuss briefly the usefulness of the computation in the business world.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M93070799

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