Question ID: HTB 2.2.014 (Topic: CVP Analysis)
- This topic has 1 reply, 2 voices, and was last updated 1 month ago by Lynn Roden.
I got the answer correct but i have a doubt to be cleared. While i took the weighted Average Contribution Margin as 6.75 and divided total FC $975000 by $ 6.76 it gave the answer as 144,445 units BEP. i wanted to see the individual units produced by each product line. Therefore i divided FC for Plastic frame $ 195,000 by $1.5 (wt. Average Contribution margin ) but the answer was higher than the total BEP units. Please explain
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