NUBD Co. sells two products, Avon and Bona. The company sells these products at the rate of 2 units of Avon and 3 units of Bona. The contribution margin per unit of Avon is P4 and of Bona is P2. The total fixed costs is P420,000. The selling price of Avon is P10 and Bona is P8. Compute for the following: a. Weighted contribution margin per unit b. Weighted contribution margin ratio. Round-off to 4 decimal places. c. Break-even point in units.
NUBD Co. sells two products, Avon and Bona. The company sells these products at the rate of 2 units of Avon and 3 units of Bona. The contribution margin per unit of Avon is P4 and of Bona is P2. The total fixed costs is P420,000. The selling price of Avon is P10 and Bona is P8. Compute for the following: a. Weighted contribution margin per unit b. Weighted contribution margin ratio. Round-off to 4 decimal places. c. Break-even point in units.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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NUBD Co. sells two products, Avon and Bona. The company sells these products at the rate of 2 units of Avon and 3 units of Bona. The contribution margin per unit of Avon is P4 and of Bona is P2. The total fixed costs is P420,000. The selling price of Avon is P10 and Bona is P8. Compute for the following:
a. Weighted contribution margin per unit
b. Weighted contribution margin ratio. Round-off to 4 decimal places.
c. Break-even point in units.
d. Break-even point in sales
e. Break-even point in pesos for Avon
f. Break-even point in pesos for Bona.
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