https://r2.erweima.ai/mathbot/image/172661986275314ks4ljn.docx

The document you uploaded focuses on **Cost-Volume-Profit (CVP) Analysis**, including the planning of break-even points, profitability, and utility for **Industrias Eléctricas Díaz**. Here's a breakdown of the key tasks from the document:

1. **Profit and Loss Statement**: You are required to prepare a profit and loss statement using decision-making frameworks.
   
2. **Contribution Margin and Contribution Ratio**: Calculate and explain which products (A or B) contribute more to overall profits.

3. **Break-Even Point per Product**: Calculate the break-even point using the weighted average contribution margin.

4. **Production to Reach Net Profit Target**: Determine how much of each product should be produced to achieve a net profit of $6,000,000, using the weighted average methodology.

### Let's begin by calculating key items such as the **Contribution Margin** and the **Break-Even Point**.

#### 1. **Contribution Margin (CM)**:
For each product:
- Product A:  
   CM (A) = Selling Price - Variable Cost = 25,000 - 15,000 = 10,000
- Product B:  
   CM (B) = 35,000 - 20,000 = 15,000

#### 2. **Break-Even Point (BEP)**:
We can calculate the total **Break-Even Point** using the weighted average contribution margin.

Let me know if you want me to continue with the calculations for the break-even point, profitability, and the required production to achieve the target profit, or if you'd like to focus on another specific part of the task.

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Here are 5 related questions to help expand this analysis:

1. How do you calculate the **weighted average contribution margin** for both products?
2. What is the formula for determining the break-even point when multiple products are involved?
3. How do taxes (35% in this case) impact the net profit calculations?
4. What are the key factors influencing **pricing strategy** for products A and B?
5. How does the **fixed cost** affect the company's profitability at different sales levels?

**Tip**: Always ensure to include **fixed costs** when determining the break-even point, as they are crucial in the cost-volume-profit relationship.

This exercise focuses on calculating key financial metrics, such as contribution margin, break-even point, and net profit targets, for Industrias Eléctricas Díaz. The analysis includes products A and B, covering formulas like contribution margin and weighted average break-even point.

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