Question 3 Part A RDX also manufactures decorative coloured outdoor tiles. It has fixed costs of $749,100. RDX's sales mix, and contribution margin per box of tiles are shown below: Product Type Red Brown Green Sales Mix Contribution Margin per crate $130 $120 $70 35% 45% 20% Required: a. Based on the current sales mix, compute the weighted average contribution margin per crate. b. Compute the number of each type of coloured stone that the company would need to sell in order to break even under this product mix.

Question 3 Part A RDX also manufactures decorative coloured outdoor tiles. It has fixed costs of $749,100. RDX's sales mix, and contribution margin per box of tiles are shown below: Product Type Red Brown Green Sales Mix Contribution Margin per crate $130 $120 $70 35% 45% 20% Required: a. Based on the current sales mix, compute the weighted average contribution margin per crate. b. Compute the number of each type of coloured stone that the company would need to sell in order to break even under this product mix.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 58P: Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and...

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Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: Product Sales Priceper Unit Variable Costper Unit Model 101 $275 $185 Model 201 355 220 Model 301 405 240 The current product mix is 4:3:2. The three models share total fixed costs of $328,500. A. Calculate the sales price per composite unit. Sales price $fill in the blank 363349fb9022017_1 per composite unit B. What is the contribution margin per composite unit? Contribution margin $fill in the blank 363349fb9022017_2 per composite unit C. Calculate Manatoah’s break-even point in both dollars and units. Break-even point in dollars $fill in the blank 363349fb9022017_3 Break-even point in units fill in the blank 363349fb9022017_4 units D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0".…
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