International Printer Machines (IPM) builds three computer printer models: Alpha, Beta, and Gamma. Information for these three products is as follows: Alpha Beta Gamma Total Selling price per unit $250 $400 $1 500 Variable cost per unit $80 $200 $800 Expected unit sales (annual) 12,000 6,000 2,000 20,000 Sales mix 50 percent 40 percent 10 percent 100 percent Total annual fixed costs are $5,000,000. Assume the sales mix remains the same at all levels of sales.Required: Calculate the weighted average unit contribution margin, assuming a constant sales How many units of each printer must be sold to break even? i) Explain what is margin of safety

International Printer Machines (IPM) builds three computer printer models: Alpha, Beta, and Gamma. Information for these three products is as follows: Alpha Beta Gamma Total Selling price per unit...

International Printer Machines (IPM) builds three computer printer models: Alpha, Beta, and Gamma. Information for these three products is as follows:

	Alpha	Beta	Gamma	Total
Selling price per unit	$250	$400	$1 500
Variable cost per unit	$80	$200	$800
Expected unit sales (annual)	12,000	6,000	2,000	20,000
Sales mix	50 percent	40 percent	10 percent	100 percent

Total annual fixed costs are $5,000,000. Assume the sales mix remains the same at all levels of sales.

Required:

Calculate the weighted average unit contribution margin, assuming a constant sales

How many units of each printer must be sold to break even?

i) Explain what is margin of safety

Jun 08, 2022

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International Printer Machines (IPM) builds three computer printer models: Alpha, Beta, and Gamma. Information for these three products is as follows: Alpha Beta Gamma Total Selling price per unit...

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