Cargo, Inc., has two products: Product D (unit sales price, $25; unit variable cost, $15) and Product J (unit sales price, $14; unit variable cost, $9). The company’s sales mix of Product D to Product J is 4:1 and fixed costs are $32,850.
(a) Determine the weighted-average contribution margin.
(b) Calculate the weighted-average breakeven point.
(c) Compute the breakeven point for each product.