Acc280 Financial Accounting: P7-21 Boise Company manufactures and sells three products
Acc280 Financial Accounting P7-21 Boise Company manufactures and sells three products: Good, Better, and Best. Annual fixed costs are $3,315,000, and data about the three products follows. Good Better Best Sales mix in units 30% 50% 20% Selling Price 250 350 500 Variable cost 100 150 250
Required a. Determine the weighted-average unit contribution margin. b. Determine the break-even volume in units for each product. C. Determine the total number of units that must be sold to obtain a profit for the company of $234,000. D. Assume that the sales mix for Good, Better, and Best is changed to 50%, 30%, and 20% respectively. Will the number of units required to break-even increase or decrease?