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In a company that makes assorted clocks, the new manager will like to report on...

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Accounting

In a company that makes assorted clocks, the new manager will like to report on the sales mix of the company. The companys fixed cost for the three styles of clocks is $729,000. Time Tellers sales mix, and contribution margin per crate are shown below: Product Type Sales Mix Contribution Margin per crate Red 35% $140 Brown 65% $130 Green 25% $66 Required: a. Based on the current sales mix, compute the weighted average contribution margin per crate. (3 Marks) b. Compute the number of each type of clock that the company would need to sell in order to break even under this product mix. (5 Marks)

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