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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
1. Containers International decides to sell Small containers only, calculate the break-even point in units.
2. Calculate the total weighted average contribution margin per unit if Containers International sells its products based on the sales mix of 70% Large containers and 30% Small containers.
3. Based on the sales mix of 70% Large containers and 30% Small containers, calculate the total number of units for Containers International to break even.
4. If variable costs rise by 10%, calculate the breakeven point in units, assuming Containers International sells only the Small container
![Containers International produces two types of shipping containers Small and Large. The following
information is available related to each product:
Small
Large
$2,600
$3,600
Sales price per unit
Variable costs per unit
$600
$800
The Large containers account for 70% of total product sales and the Small container accounts for
the rest.
Containers International's fixed costs are rent ($100,000) and salaries ($470,000).](https://content.bartleby.com/qna-images/question/33a5315b-cdf5-433f-ab7c-067765604b1f/4577fe19-816c-48a8-bdaf-e7dbd80cb103/ff8mqqi_thumbnail.jpeg)
Transcribed Image Text:Containers International produces two types of shipping containers Small and Large. The following
information is available related to each product:
Small
Large
$2,600
$3,600
Sales price per unit
Variable costs per unit
$600
$800
The Large containers account for 70% of total product sales and the Small container accounts for
the rest.
Containers International's fixed costs are rent ($100,000) and salaries ($470,000).
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