Meuller Company: Determine Weighted Averages and Break Even
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Mueller Company manufactures and sells three products: A, B, and C. Annual fixed costs are $3,630,000, and data about the three products follow.
Perform the following showing your work for each question:
A. Determine the weighted-average unit contribution margin.
B. Determine the break-even volume in units for each product.
C. Determine the total number of units that must be sold to obtain a profit for the company of $605,000.
D. Assume that the sales mix for A, B, and C is changed to 40%, 30%, and 30%, respectively. Will the number of units required to break-even increase or decrease? Explain. Hint: Detailed calculations are not needed to obtain the proper solution.
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Solution Summary
The expert determines the weighted averages and break even.
Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
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