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WaterSports USA sells three types of wake boards. Information relative to sales in units and dollars are given below.
| Wakeman | Jumper | Novice | Total |
Sales in Units | 1,000 | 5,000 | 2,000 | 8,000 |
Price per Unit | $200 | $150 | $100 | |
Variable cost per Unit | $150 | $100 | $50 | |
Fixed costs are projected to be $100,000. Carry all calculations to four decimal places.
Required:
Compute the contribution margin per unit.
Compute the weighted contribution margin.
Compute the break-even in total units.
Compute the break-even per product.
5. Discuss briefly the usefulness of the computation in the business world.
Answer & Explanation
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