Warner Company has $254,400 of total fixed costs and sells products A and B with

Question

Warner Company has $254,400 of total fixed costs and sells products A and B with a product mix of 40% A and 60% B. Selling prices and variable costs for A and B result in contribution margins per unit of $13 and $9, respectively. Compute the break-even point.

Enter product mix answers in decimal form. Round weighted average unit contribution margin to two decimal places, if applicable.

Product Product Mix Contribution Margin per unit Weighted average unit contribution margin A Answer $Answer $Answer B Answer $Answer $Answer $Answer

Explanation / Answer

Answer:-

Company break even point in units=

Fixed costs/Weighted average contribution margin unit

=$254400/$10.60 per unit =24000 units

Warner Company Product Product Mix Contribution margin per unit Weighted average unit contribution margin (a) (b) (c=a*b) A 40% $13 5.2 B 60% $9 5.4 10.6

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