CheeMortal music store sells four kinds of musical instrumentsâpianos, violins, cellos, and flutes. The current sales mix for the store and the contribution margin ratio (unit contribution margin divided by unit sales price) for these product lines are as follows:
Total sales for the next year are forecast to be $250,000. Total fixed costs will be $50,000.
a. Prepare a table showing (1) sales, (2) total variable costs, and (3) the total contribution margin associated with each product line.
b. What is the aggregate contribution margin ratio indicative of the sales mix? (Round off to two decimals.)
c. At this sales mix, what is the break-even point indollars?