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Bright Eyes manufactures and sells two products. The first product is a disposable contact lens set that lasts about 3 months. The second product is...

Bright Eyes manufactures and sells two products. The first product is a disposable contact lens set that lasts about 3 months. The second product is a wetting solution. Customers of the first product use one bottle of solution each month. As a result, bottles of solution outsell lens sets by a 3:1 ratio. Lens sets sell for $36 per set, and have a contribution margin ratio of 50%. The solution sells for $6 per bottle, but only generates variable costs of $1. The company's total fixed costs are $9,900,000.

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1) Weighted Contribution Margin per unit = Weight of contract lens*Contribution Margin of contract lens + Weight of wetting... View the full answer

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