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Martin, Inc

question 49

Essay

Martin, Inc., has two products: a pocket metronome (unit sales price, $25; unit variable cost, $15) and a pocket tuner (unit sales price, $14; unit variable cost, $9). The company's sales mix of the pocket metronome to the pocket tuner 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.


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