E6-18 Analyzing Multiproduct CVP [LO 6-6] Tiago makes three models of camera len

Question

E6-18 Analyzing Multiproduct CVP [LO 6-6] Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow Lens A Lens B Lens C Percentage of Unit sales 25% Contribution Margin per unit S45 37 50 31 Required 1. Determine the weighted-average contribution margin per unit. (Round your intermediate calculations and final answer to 2 decimal places.) d Average CM per unit 2. Determine the number of units of each product that Tiago must sell to break even if fixed costs are $189,000. (Round intermediate calculations and final answers to the nearest whole number.) Units of A Units of E Units of C Units Units Units 3. Determine how many units of each product must be sold to generate a profit of $68,000. (Round intermediate calculations and final answers to the nearest whole number.) Units of A Units of B Units of C Units Units Units

Explanation / Answer

1 Weighted average CM=(45*25%)+(37*44%)+(50*31%)= 43.03% 2 Overall break-even = 189000/43.03%= $439228 Units of A 109807 =439228*25% Units of B 193260 =439228*44% Units of C 136161 =439228*31% 3 Overall units =(189000+68000)/43.03%= $597258 Units of A 149315 =597258*25% Units of B 262794 =597258*44% Units of C 185150 =597258*31%

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