Roosevelt Corporation has a weighted-average unit contribution margin of $40 fir

Question

Roosevelt Corporation has a weighted-average unit contribution margin of $40 fir its two products; Standard and Supreme: Exoected sales for Roosevelt are 40,000 Standard and $60,000 Supreme. Fixed expenses are $1,800,000. How many Standards would Roosevelt sell at the break-even point?
Roosevelt Corporation has a weighted-average unit contribution margin of $40 fir its two products; Standard and Supreme: Exoected sales for Roosevelt are 40,000 Standard and $60,000 Supreme. Fixed expenses are $1,800,000. How many Standards would Roosevelt sell at the break-even point?

Explanation / Answer

Composite BEP (In Units) = Fixed Cost / Composite Contribution Margin per Unit Composite BEP (In Units) = $1,800,000 / $40 Composite BEP (In Units) = 45,000 Units No. of Standards Sold at BEP = 45,000 Units X 40% No. of Standards Sold at BEP = 18,000 Units

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