Cost Accounting (15th Edition)

by Horngren, Charles T.; Datar, Srikant M.; Rajan, Madhav V.

Published by Prentice Hall

ISBN 10: 0133428702

ISBN 13: 978-0-13342-870-4

Chapter 3 - Cost-Volume-Profit Analysis - Assignment Material - Exercises - Page 97: 3-28(1)

Answer

Breakeven Point in Units = Fixed Costs / Weighted Average Contribution Margin per Unit Breakeven Point in Units = 405,000 / 3.8571 Breakeven Point in Units = 105,000 units

Work Step by Step

Weighted Average Contribution Margin per Unit = (Contribution Margin per Unit A * Percentage of A) +(Contribution Margin per Unit B * Percentage of B) +(Contribution Margin per Unit C * Percentage of C) Weighted Average Contribution Margin per Unit = (5 * 24,000 / 168,000) + (4 * 96,000 / 168,000) + (3 * 48,000 / 168,000) Weighted Average Contribution Margin per Unit = 0.7143 + 2.2857 + 0.8571 Weighted Average Contribution Margin per Unit = 3.8571

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