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    butterfly50 Posts: 3, Reputation: 1
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    #1

    Jul 30, 2010, 10:41 AM
    Multiproduct, Contribution Margin National Tennis Racquet Co. produces and sells thr
    Multiproduct, Contribution Margin National Tennis Racquet Co. produces and sells three models.
    Smasher Basher Dinker Total
    Units sold 1,000 2,000 2,000 5,000
    Sales $100,000 $120,000 $80,000 $300,000
    Less variable costs 50,000 48,000 24,000 122,000
    Contribution margin 50,000 72,000 56,000 178,000
    Less common fixed costs 103,000
    Profit $75,000

    A. What is the weighted average contribution margin per unit?
    B. Calculate the break-even point in units assuming the current mix.
    C. What would be the number of Smashers, Bashers, and Dinkers in the break-even level of sales?
    butterfly50's Avatar
    butterfly50 Posts: 3, Reputation: 1
    New Member
    		  
    #2

    Jul 30, 2010, 10:42 AM

    Multiproduct, Contribution Margin National Tennis Racquet Co. produces and sells three models.
    Smasher Basher Dinker Total
    Units sold 1,000 2,000 2,000 5,000
    Sales $100,000 $120,000 $80,000 $300,000
    Less variable costs 50,000 48,000 24,000 122,000
    Contribution margin 50,000 72,000 56,000 178,000
    Less common fixed costs 103,000
    Profit $75,000

    A. What is the weighted average contribution margin per unit?
    B. Calculate the break-even point in units assuming the current mix.
    C. What would be the number of Smashers, Bashers, and Dinkers in the break-even level of sales?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #3

    Jul 31, 2010, 02:31 AM

    Please see the guidelines for posting homework problems:
    https://www.askmehelpdesk.com/financ...-b-u-font.html
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