Diego makes three models of camera lens. Its product mix and contribution margin per unit follow: Percentage of Unit sales Contribution Margin per unit Lens A 26 % $ 42 Lens B 36 34 Lens C 38 47
Required:
1. Determine the weighted-average contribution margin per unit.
2. Determine the number of units of each product that Diego must sell to break even if fixed costs are $184,000.
3. Determine how many units of each product must be sold to generate a profit of $74,000.

Q&A Education