Answer:
A. $36.55
B. 5116 units
C. 7114 units
Explanation:
Requirement 1: Weighted average contribution margin per unit
Lens A = $38 x 25% = $9.5
Lens B = $30 x 40% = $12
Lens C = $43 x 35% = $15.05
Total Contribution margin per unit = $36.55
Requirement 2: Breakeven if fixed cost is $187,000
Break even point (units) = Fixed cost / Contribution per unit
Break even point (units) = 187,000/36.55
Break even point (units) = 5116 units
Lens A = 5116 x 25% = 1279 units
Lens B = 5116 x 40% = 2046 units
Lens C = 5116 x 35% = 1791 units
Requirement 3: How many units to be sold to generate $73,000 profit
Required units = Fixed cost - required profit / contribution per unit
Required units = ($187,000-$73,000)/$36.55
Required units = 7114 units
Lens A = 7114 x 25% = 1779 units
Lens B = 7114 x 40% = 2846 units
Lens C = 7114 x 35% = 2489 units
