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Requirement 5. In addition to selling hiking socks, The Belay Company would like to start selling sports socks. The Belay Company expects to sell one pair of hiking socks for every three pairs of sports socks. The Belay Company will buy the sports socks for $9 per pair and sell them for $13 per pair. Total fixed costs will stay at $8,000 per month. Calculate the breakeven point in units for both hiking socks and sports socks. First, complete the table below to calculate the weighted average contribution margin. Hiking Sports Total Sales price per unit Variable cost per unit Contribution margin per unit Contribution margin Weighted average contribution margin per unit
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