Samantha Corporation Total Manufacturing OH 490,000 Fixed part of manufacturing OH 190,000 Variable part of Manufacturing OH 300,000 Total units produced 100,000 Variable Manufacturing OH /Unit 3 Selling & Admin OH 520,000 Variable Selling & Admin @$4 /unit 400,000 Fixed Selling & Admin 120,000 Break even analysis Details Product 1 Product 2 Material cost per unit 6 8 Direct Labor per unit 4 6 Variable Manufacturing OH per unit 3 3 Variable Selling & Admin OH per unit 4 4 Total Variable cost per unit 17 21 Selling Price/unit 24 32 Contribution margin /unit 7 11 Sales volume 60,000 40,000 Sales volume ratio 60% 40% Weighted contribution per unit =7*0.60+11*0.40 Weighted contribution per unit = 8.60 Total Fixed cost Fixed part of manufacturing OH 190,000 Fixed Selling & Admin 120,000 Total Fixed cost 310,000 Weighted contribution per unit 8.60 Break Even Units 36,047 Break Even units Product 1 21,628 (at 60% ratio) Break Even units Product 2 14,419 (at 40% ratio) Solution Samantha Corporation Total Manufacturing OH 490,000 Fixed part of manufacturing OH 190,000 Variable part of Manufacturing OH 300,000 Total units produced 100,000 Variable Manufacturing OH /Unit 3 Selling & Admin OH 520,000 Variable Selling & Admin @$4 /unit 400,000 Fixed Selling & Admin 120,000 Break even analysis Details Product 1 Product 2 Material cost per unit 6 8 Direct Labor per unit 4 6 Variable Manufacturing OH per unit 3 3 Variable Selling & Admin OH per unit 4 4 Total Variable cost per unit 17 21 Selling Price/unit 24 32 Contribution margin /unit 7 11 Sales volume 60,000 40,000 Sales volume ratio 60% 40% Weighted contribution per unit =7*0.60+11*0.40 Weighted contribution per unit = 8.60 Total Fixed cost Fixed part of manufacturing OH 190,000 Fixed Selling & Admin 120,000 Total Fixed cost 310,000 Weighted contribution per unit 8.60 Break Even Units 36,047 Break Even units Product 1 21,628 (at 60% ratio) Break Even units Product 2 14,419 (at 40% ratio).