Answer:
Product Selling price Unit variable cost
$ $
Trunk switch 60 28
Gas door switch 75 33
Glove box light 40 22
175 83
Composite contribution margin
= Composite selling price - Composite unit variable cost
= $175 - $83
= $92
Composite contribution margin ratio
= Composite contribution margin
Composite selling price
= $92
$175
= 0.525714285
Composite break-even point in dollars
= Fixed cost
Composite contribution margin ratio
= $18,840
0.525714285
= $35,837
Explanation:
In this case, there is need to add all the selling prices to obtain composite selling price. We also need to add all the unit variable costs to derive composite unit variable cost.
Composite contribution equals composite selling price minus composite unit variable cost.
Composite contribution margin ratio is the ratio of composite contribution to composite selling price.
Composite break-even point in dollars equal fixed cost divided by composite contribution margin ratio.