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Mario makes three models of camera lens. Its product mix and contribution margin per unit...

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Accounting

Mario 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 28% $ 48
Lens B 36 40
Lens C 36 53

Required:

  1. Determine the weighted-average contribution margin per unit.
  2. Determine the number of units of each product that Mario must sell to break even if fixed costs are $192,000.
  3. Determine how many units of each product must be sold to generate a profit of $78,000.
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