Two different product lines are manufactured and sold by Cheche Manufacturing Corp. Monthly fixed cost amounted to P90,000. Data with respect to each product lines follows: Product Cutie P 10.00 5.00 Product Sweetie P 8.00 2.00 Selling price per unit Variable cost per unit Original sales mix Required: a. Based on the original sales mix: 1. What is the weighted contribution margin per unit? 2. What is the combined units to break-even? 60% 40% 3. How many units each product line to be sold in order to break- even? Show proofs. b. Suppose the mix is 50-50 for each product line:
Two different product lines are manufactured and sold by Cheche Manufacturing Corp. Monthly fixed cost amounted to P90,000. Data with respect to each product lines follows: Product Cutie P 10.00 5.00 Product Sweetie P 8.00 2.00 Selling price per unit Variable cost per unit Original sales mix Required: a. Based on the original sales mix: 1. What is the weighted contribution margin per unit? 2. What is the combined units to break-even? 60% 40% 3. How many units each product line to be sold in order to break- even? Show proofs. b. Suppose the mix is 50-50 for each product line:
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 23E: Variable cost method of product pricing Based on the data presented in Exercise 17, assume that...
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