PhotoMix Corporation produces three products. Cost, price, and volume data is shown below: $\begin{array}{lr}
\text { Total Fixed costs } & \$ 2,400 \
\text { Tax rate } & 40 \%
\end{array}$

$\begin{array}{lrrr}&\text { Picture } & \text { Candle } & \text { CD } \
&\text { Holders } & \text { Holders } & \text { Holders } \
\hline
\text { Normal volume } & 300 & 150 & 200 \
\text { Price per unit } & \$ 5 & \$ 7 & \$ 10 \
\text { Variable cost per unit } & 2 & 3 & 4
\end{array}$ When using revenues as the measure, what proportion of the sales mix do CD holders represent? Round to the nearest whole percent.

Question

PhotoMix Corporation produces three products. Cost, price, and volume data is shown below: $\begin{array}{lr}
\text { Total Fixed costs } & \$ 2,400 \
\text { Tax rate } & 40 \%
\end{array}$

$\begin{array}{lrrr}&\text { Picture } & \text { Candle } & \text { CD } \
&\text { Holders } & \text { Holders } & \text { Holders } \
\hline
\text { Normal volume } & 300 & 150 & 200 \
\text { Price per unit } & \$ 5 & \$ 7 & \$ 10 \
\text { Variable cost per unit } & 2 & 3 & 4
\end{array}$ When using revenues as the measure, what proportion of the sales mix do CD holders represent? Round to the nearest whole percent.

Quizplus · Accepted Answer

To find the proportion of the sales mix that CD holders represent, calculate the total revenue for each product and then find the percentage of total revenue that comes from CD holders. Picture Holders: $300 \times \$5 = \$1,500$Candle Holders: $150 \times \$7 = \$1,050$CD Holders: $200 \times \$10 = \$2,000$Total Revenue: $ \$1,500 + \$1,050 + \$2,000 = \$4,550$Proportion of CD holders in sales mix: $(\$2,000 / \$4,550) \times 100 = 43.96%$, rounded to the nearest whole percent is 44%.

PhotoMix Corporation Produces Three Products Total Fixed costs $2,400 Tax rate 40%\begin{array}{lr}\text { Total Fixed costs } & \$ 2,400 \\\text { Tax rate } & 40 \%\end{array} Total Fixed costs Tax rate ​$2,40040%​

PhotoMix Corporation Produces Three Products $\begin{array}{lr}\text { Total Fixed costs } & \$ 2,400 \\\text { Tax rate } & 40 \%\end{array}$