Answers
Ans. | Contribution margin per unit (a) | Sales mix (b) | Weighted Contribution margin (a*b) | ||
Product X | $630.00 | 60% | $378 | ||
Product Y | $320.00 | 40% | $128 | ||
Weighted Contribution margin | $506 | ||||
Break even point in units (Total company) = Total fixed cost/ Weighted contribution margin | |||||
$158,884 / $506 | |||||
314 units | |||||
Break even point of particular products = Break even point in units for Total company * Sales mix | |||||
Product X | 314 * 60% | ||||
188.40 | units | ||||
Product Y | 314 * 40% | ||||
125.60 | units | ||||
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