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  • Selling Price Per Unit Contribution Margin Per Unit Sales Mix Fixed Costs

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    Hanna Japsay
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    The document contains information about the sales mix, contribution margin, fixed costs, and break-even analysis of Products Beta and Gamma. It shows that with a sales mix of 4 units of Beta and 6 units of Gamma, the total break-even point is 93,750 units. It also includes calculations of the weighted average contribution margin ratio, break-even points in pesos, leverage, and the effect of a 20% increase in sales on profits.

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    The document contains information about the sales mix, contribution margin, fixed costs, and break-even analysis of Products Beta and Gamma. It shows that with a sales mix of 4 units of Beta and 6 units of Gamma, the total break-even point is 93,750 units. It also includes calculations of the weighted average contribution margin ratio, break-even points in pesos, leverage, and the effect of a 20% increase in sales on profits.

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    Download as XLSX, PDF, TXT or read online from Scribd
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    6 views1 page

    Selling Price Per Unit Contribution Margin Per Unit Sales Mix Fixed Costs

    Uploaded by

    Hanna Japsay
    The document contains information about the sales mix, contribution margin, fixed costs, and break-even analysis of Products Beta and Gamma. It shows that with a sales mix of 4 units of Beta and 6 units of Gamma, the total break-even point is 93,750 units. It also includes calculations of the weighted average contribution margin ratio, break-even points in pesos, leverage, and the effect of a 20% increase in sales on profits.

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    © All Rights Reserved
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    of 1

    Beta Gamma

    Selling price per unit 12 9


    Contribution margin per unit 8 4
    Sales mix 4 6
    Fixed costs 525,000

    Weighted CM Combined Break-even


    Products Sales Mix (SM) CM per unit
    per unit Units points in Units
    Beta 4 8 32 9,375.00 37,500.00
    Gamma 6 4 24 9,375.00 56,250.00
    Total weighted average contribution margin ratio 56 Total Sales 93,750.00

    Weighted CM Combined Break-even


    Products Sales Mix (SM) CM Ratio
    per unit Units points in Pesos
    Beta 4 0.67 2.67 98,437.50 393,750.00
    Gamma 6 0.44 2.67 98,437.50 590,625.00
    Total weighted average contribution margin ratio 5.33 Total Sales 984,375.00

    Saels (₱50/unit) 2,500,000


    Variable costs (₱30/unit) 1,500,000
    Contribution Margin 1,000,000
    Fixed costs 750,000
    Profit 250,000

    Requirements Answer
    Degree of Operationg 4
    Leverage
    % Change in Profit 80%
    Increase(Decrease) in profit 200,000

    Actual Proposed Difference Change


    Sales (₱50/unit) 2,500,000 3,000,000 500,000 20%
    Variable Cost (₱30/unit) 1,500,000 1,800,000 300,000 20%
    Contribution Margin 1,000,000 1,200,000 200,000 20%
    Fixed Costs 750,000 750,000 0
    Profit 250,000 450,000 200,000 80%

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