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Question

Accounting

Selling Price - Boots 43.50
Selling Price - Jeans 50.00
Variable Cost - Boots 25.00
Variable Cost - Jeans 39.00
Sales Mix
Boots 4
Jeans 2
Fixed Costs 1,696,000
Target After-Tax Income 1,072,000
Tax rate 33.0%
The company makes and sells two products as shown above.
Required:
A. What is the weighted average contribution margin per unit? (2 marks)

- What is the weighted average contribution margin ratio? (2 marks)
- What is the breakeven point, in total units, and by product type? (3 marks)
- How many units, in total, and by product type, would need to be sold to achieve the Target After-Tax net Income shown? (3 marks)

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