KIMBERMILYN C.

CADAY

1. Weighted average contribution margin ratio

Unit Unit Units

Variable Contribution Sold
Description Selling Price Cost Margin Monthly
B 60 36 24 16
C 90 22.5 67.5 24
Total Sold 40

Units
Sold
Monthly % of Total
B 16 40% (16/40)
C 24 60% (24/40)
Total So 40 100%

Weighted
Contributi Contributio
Description on Margin % of Total n
B 24 40% 9.6
C 67.5 60% 40.5
Weighted-average Contribution 50.1

2. Composite break-even point in units including allocation

Weighted
Contributi Contributio
Description on Margin % of Total n
B 24 40% 9.6
C 67.5 60% 40.5
Weighted-average Contribution 50.1
Break-even point 721,440 = 14,400 combined unit sales
50.1

Break- Individual
Description even Sales % of Total Sales
B 14,400 40% 5,760
C 14,400 60% 8,640
Total Units 14,400

B C Total
Sales 345,600 777,600 1,123,200
Less: Variable Expenses 207,360 194,400 401,760
Contribution Margin 138,240 583,200 721,440
Less: Fixed Expenses 721,440
Net income (Loss) 0

3. Composite break even point in pesos

Weighted
Selling
Description Selling Pric% of Total Price
B 60 40% 24
C 90 60% 54
Weighted-average selling price 78

Weighted-average contribution margin ration 50.1 = 64.23%

78

Break-even point in peso 721,440 1123213

64.23%
4. Assuming the company increases its fixed cost by P 210,420, how many units of B and C sh
break even point.
721,440 + 210,420 = 931,860

Break-even point 931,860 18600

50.1

Break-even point in peso 931,860 1450817

64.23%
any units of B and C should be sold at