Unit 1: Cost-Volume-Profit Analysis Economics Worksheet With Answers - Cma311s Notes, 2010 Page 21
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27Solution to Activity 2
2.1 Product
Contribution
x Sales mix
Weighted contribution
Solvex
N$3
0,6
N$1,80
Dysolve
N$8
0,4
N$3,20
Weighted average contribution per unit
N$5,00
Break-even point = Fixed costs ÷ Average marginal income per unit
= N$29 700 ÷ N$5
= 5 940 units
2.2 Product
Contribution
x Sales mix
Weighted contribution
Solvex
N$3
0,5
N$1,50
Dysolve
N$8
0,5
N$4,00
Weighted average contribution per unit
N$5,50
Break-even point = Fixed costs ÷ Average marginal income per unit
= N$29 700 ÷ N$5,50
= 5 400 units
Solution to Activity 3
Product
Selling price
Variable cost
Contribution
Sales mix
Weighted contribution per unit
Cassette
N$2
N$0,60
N$1,40
0,6
N$0,84
Cartridge
N$3
N$1,10
N$1,90
0,4
N$0,76
Weighted average contribution per unit
N$1,60
Break-even point (in units) = Fixed cost ÷ Average contribution per unit
= N$3 000 ÷ N$1,60
= 1 875 units
Individual break-even sales in units:
Cassettes: 1 875 x 0,6 = 1 125 units
Cartridges: 1 875 x 0,4 = 750 units
1 875 units
Break-even point (in sales value):
Cassettes: 1 125 units x N$2 = N$2 250
Cartridges: 750 units x N$3 = N$2 250
Total sales to break even
= N$4 500
3.2
Required sales = (Fixed cost + Expected profit) ÷ Average contribution per unit
= (N$3 000 + 600) ÷ N$1,60
= 2 250 units
Individual break-even sales in units:
Cassettes: 2 250 x 0,6 = 1 350 units
Cartridges: 2 250 x 0,4 = 900 units
2 250 units
21
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