Explore BrainMass

Explore BrainMass

    Meuller Company: Determine Weighted Averages and Break Even

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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.

    © BrainMass Inc. brainmass.com June 3, 2020, 11:11 pm ad1c9bdddf
    https://brainmass.com/business/financial-ratios/meuller-company-determine-weighted-averages-break-even-267326

    Solution Summary

    The expert determines the weighted averages and break even.

    $2.19

    ADVERTISEMENT