BM1915

NAME: Crystal Anne P. Romero DATE: October 27, 2022 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:

Break-even point in units

Break-
Weighted
Sales Mix CM per Combined even
Product CM per
(SM) Unit Units Point in
Unit
Units
Alpha 2 8 16 12,500 25,000
Omega 3 4 12 12,500 37,500
Total weighted Average Contribution Total
28 62,500
Margin Sales

Break-even point in pesos

Weighte Break-even
Sales Mix Combined
Product CM Ratio d CM Point in
(SM) Units
Ratio Pesos
Alpha 40% 50% 20% 795,454.55 318,181.82
Omega 60% 40% 24% 795,454.55 477,272.73
Total weighted Average Contribution
44% Total Sales 795,454.55
Margin Ratio

04 Activity 2 *Property of STI

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