Unit 1: Cost-Volume-Profit Analysis Economics Worksheet With Answers - Cma311s Notes, 2010 Page 23
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27Solution to Activity 6
Product
Sales revenue
x P/V ratio
= Contribution
J
N$105 000¹
0,4
N$ 42 000
K
N$315 000²
0,5
N$157 500
Totals
N$420 000
N$199 500
1
N$420 000
¹
4 X
1
3
N$420 000
²
4 X
1
Total contribution
Average contribution ratio =
Total sales
N$199 500
= N$420 000
= 0,475
Fixed costs
Break-even point in sales value = Average contribution ratio
N$120 000
=
0,475
= N$252 631,57
Therefore, answer = C
Solution to Activity 7
The average contribution to sales ratio is 48% (given in question)
48% x 3 = 144%
Therefore, Product Cee = 144% – (40% + 50%)
= 54%
Product
Contribution x Sales mix
= Weighted contribution
Aye
0,40 (40%)
0,40
0,16
Bee
0,50 (50%)
0,25
0,125
Cee
0,54 (54%)
0,35
0,189
Weighted average contribution
0,474 (47,4%)
Answer = C
Solution to Activity 8
8.1 Product
Contribution
x Sales mix
= Weighted contribution
P
N$5
4/7
2,857
E
N$2
3/7
0,857
Weighted average contribution per unit
3,714
Break-even point (in units) = Fixed cost ÷ Average contribution per unit
= N$561 600 ÷ 0,3714
23
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