Witrox Bhd sells two models of smartphone, the Oppo and the Xiaomi. Oppo Xiaomi Sales price per unit 60.0 85.0 Variable cost per unit 35.0 54.0 Contribution margin per unit 25.0 31.0 Witrox has determined that it would break even at an annual sales volume of 50,000 units, of which 75% would be Oppo. Required: a) What are the contribution

Sep 8, 2023

  1. Witrox Bhd sells two models of smartphone, the Oppo and the Xiaomi. 
  2.                                                            Oppo       Xiaomi
  3. Sales price per unit                           60.0         85.0 
  4. Variable cost per unit                      35.0         54.0 
  5. Contribution margin per unit        25.0          31.0 
  6. Witrox has determined that it would break even at an annual sales volume of 50,000 units, of which 75% would be Oppo. 
  7. Required: 
  8. a) What are the contribution margin ratios for each product and the company? 
  9.  b) What is the amount of Witrox’s estimated annual fixed costs?

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