Ch_4_Multi-Product_Break-Even

Ch_4_Multi-Product_Break-Even -...

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Type of Book Premium Regular Paperback Selling Price per Book $150 $100 $60 Variable Cost per Book $50 $30 $20 Contribution Margin per Book $100 $70 $40 Normal Sales Mix %'s 10% 40% 50% Total Fixed Costs $12,180 Contribution Margin per Book $100 $70 $40 Weighted Avg.   x    Sales Mix % 10% 40% 50% Cont. Margin Weighted Average Contribution $10.00 $28.00 $20.00 $58.00 Total Fixed Cost $12,180 Weighted Average Contribution Margin $58.00 Equals Required Total Book Unit Sales 210 Books Total Book Unit Sales 210 210 210   x              Sales Mix % 10% 40% 50% = Sales by Book Type 21 84 105 Total Sales @ x  Selling Price per Book $150 $100 $60 Break-Even =   Total Sales Dollars by Book Type $3,150 $8,400 $6,300 $17,850 Proof: Contribution Margin Income Statement Sales $17,850 Units of Each Book 21 84 105 Variable Cost per Book $50 $30 $20 Total Variable Cost $1,050
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This note was uploaded on 10/20/2011 for the course ACC 222 taught by Professor Brewer during the Spring '08 term at Miami University.

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Ch_4_Multi-Product_Break-Even -...

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