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  3. 2 kipper ltd sells three models of heaters andndash the...

Question: 2 kipper ltd sells three models of heaters andndash the...

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2. Kipper Ltd sells three models of heaters – the Standard, the Deluxe, and the Pro. Selected information on the rackets is given below:

All sales are made through the company’s own retail outlets. The company has the following fixed costs:

Required:

a) Calculate the unit contribution margin for each product type.

b) Determine the weighted-average unit contribution margin.

c) Compute the break-even point in units for the company as a whole.

d) Compute the break-even point in units for each product.

e) Determine the total number of units that must be sold to obtain a target profit of $90,000 for the company. 

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