Financial Reporting, Financial Statement Analysis and Valuation
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN: 9781285190907
Author: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher: Cengage Learning
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Malibu, Inc., which has fixed costs of $2,965,000, sells three
products whose sales price, variable cost per unit, and
percentage of sales units are presented in the table below.
Sales Price
Sales Mix
Variable Cost $4.00
a.
b.
Product A
C.
$8.00
50%
Product B
$16.00
$6.00
30%
Product C
$31.00
$17.00
20%
What is the weighted average unit contribution
margin? (Round your answer to 2 decimal places.)
At the break-even point, how many units of
Product A must be sold? (Round intermediate
calculations to 2 decimal places. Round your
answer to the nearest whole number.)
To make a profit of $1,124,000, how many units of
Product B must be sold? (Round intermediate
calculations to 2 decimal places. Round your
answer to the nearest whole number.)
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Transcribed Image Text:Malibu, Inc., which has fixed costs of $2,965,000, sells three products whose sales price, variable cost per unit, and percentage of sales units are presented in the table below. Sales Price Sales Mix Variable Cost $4.00 a. b. Product A C. $8.00 50% Product B $16.00 $6.00 30% Product C $31.00 $17.00 20% What is the weighted average unit contribution margin? (Round your answer to 2 decimal places.) At the break-even point, how many units of Product A must be sold? (Round intermediate calculations to 2 decimal places. Round your answer to the nearest whole number.) To make a profit of $1,124,000, how many units of Product B must be sold? (Round intermediate calculations to 2 decimal places. Round your answer to the nearest whole number.)
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