G. Jones has three products; Product A, Product B, Product C. Their respective weighted average contribution margins per unit are; Product A $6.00 per unit, Product B $8.00 per unit, Product C $3 per unit. Fixed costs are $2,500 and target profit is $6,000. The number of units required to be sold is 500.

Question

G. Jones has three products; Product A, Product B, Product C.  Their respective weighted average contribution margins per unit are; Product A $6.00 per unit, Product B $8.00 per unit, Product C $3 per unit.  Fixed costs are $2,500 and target profit is $6,000.  The number of units required to be sold is 500.

Quizplus · Accepted Answer

The total weighted average contribution margin per unit is $5.67.  The number of units required to be sold is 1,058.

G Jones Has Three Products; Product A, Product B, Product