BM1915

NAME: DATE: SCORE:

ACTIVITY
Assume that a company produces two (2) types of products: Alpha and Omega. The company plans to produce
two (2) units of Alpha and three (3) units of Omega. Alpha has a contribution margin per unit of P8.00, while
Omega has P4.00. The company has total fixed costs of P350,000. The selling price of Alpha is P16.00, while
Omega is P10.00.

Required:
A. Break-even point in units
B. Break-even point in pesos

A. Break-even point in units

Products Sales Mix (SM) CM per Unit Weighted CM Combined Break-Even

per Unit Units Point in Units
Alpha
Omega
Total weighted average contribution margin Total Sales

B. Break-even point in pesos

Products Sales Mix Ratio CM Ratio Weighted CM Total sales in Break-Even

Ratio Pesos Point in Pesos
Alpha
Omega
Total WACM ratio Total Sales

04 Activity 2 *Property of STI

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