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Martin, Inc

Accounting

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Martin, Inc., which has fixed costs of $2,150,000, sells three products whose sales price, variable cost per unit, and percentage of sales units are presented in the table below.

Product A Product B Product C

Sales price P7.00 P12.00 P25.00

Variable cost P3.00 P10.00 P12.00

Sales mix 60% 30% 10%

Required:

1.    What is the weighted average unit contribution margin?

2.    At the break-even point, how many units of Product A must be sold?

3.    To make a profit of $1,075,000, how many units of Product B must be sold?