Question

Look at the sales prices change that is being suggested. In particular, Winetki talks about one of the product's prices as doubling, and that the break-even analysis should be updated for that.
Using just the suggested change to that product's price change, and ignoring all other suggested changes, calculate a revised break-even point in units for the firm as a whole, using the weighted-average contribution margin approach.

Answer 1

The calculation of a revised break-even point in units for the firm as a whole, using the weighted-average contribution margin approach is 1,155,556 units.

What is the weighted-average contribution margin?

The weighted-average contribution margin shows the average amount that a group of products or services contribute to meet the fixed costs.

The weighted-average contribution margin can be computed as Aggregate sales - Aggregate variable expenses) ÷ Number of units sold.

Data and Calculations:

Aggregate sales revenue = $1,800,000

Aggregate variable costs = $1,125,000

Aggregate contribution margin = $675,000 ($1,800,000 - $1,125,000)

Total units sold = 1,500,000

Total fixed costs = $520,000

Weighted average contribution margin = $0.45 ($675,000/1,500,000)

Break-even point in units = 1,155,556 units ($520,000/$0.45)

Thus, the calculation of a revised break-even point in units for the firm as a whole, using the weighted-average contribution margin approach is 1,155,556 units.

Learn more about break-even analysis at brainly.com/question/21137380

#SPJ1