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