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Homework answers / question archive / Martin, Inc
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?
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