FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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**Question 5.2**

Calculate the total weighted average contribution margin per unit if Dog Access sells its products based on the sales mix of 80% Large doors and 20% Small doors. **NOTE:** Enter only the number of dollars, do not enter the dollar, "$", symbol. Therefore if your answer is "$10", enter only "10".
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Transcribed Image Text:**Question 5.2** Calculate the total weighted average contribution margin per unit if Dog Access sells its products based on the sales mix of 80% Large doors and 20% Small doors. **NOTE:** Enter only the number of dollars, do not enter the dollar, "$", symbol. Therefore if your answer is "$10", enter only "10".
**Dog Access Production Information**

Dog Access produces two types of dog doors - Small and Large. The following information is available related to each product:

|                           | Small | Large |
|---------------------------|-------|-------|
| **Sales price per unit**  | $650  | $900  |
| **Variable costs per unit** | $150  | $200  |

- The Large doors account for 80% of total product sales, and the Small doors account for the rest.
- Dog Access' fixed costs are rent ($50,000) and salaries ($235,000).

**Question 5.1:**

If Dog Access decides to sell Large doors only, calculate the break-even point in units. Round up to the nearest whole unit. 

**NOTE:** Enter only the number of units. For example, if your answer is 10 units, enter only "10".
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Transcribed Image Text:**Dog Access Production Information** Dog Access produces two types of dog doors - Small and Large. The following information is available related to each product: | | Small | Large | |---------------------------|-------|-------| | **Sales price per unit** | $650 | $900 | | **Variable costs per unit** | $150 | $200 | - The Large doors account for 80% of total product sales, and the Small doors account for the rest. - Dog Access' fixed costs are rent ($50,000) and salaries ($235,000). **Question 5.1:** If Dog Access decides to sell Large doors only, calculate the break-even point in units. Round up to the nearest whole unit. **NOTE:** Enter only the number of units. For example, if your answer is 10 units, enter only "10".
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