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Determine the number of units of each model that the company must produce to bre

ID: 2465834 • Letter: D

Question

Determine the number of units of each model that the company must produce to break even.

Basic

units Basic Plus

units Premium

units Snow Cap Springs produces and sells water filtration systems for homeowners. Information regarding its three models is shown below. Basic Plus Premium Units sold Selling price Variable cost 912 $248 $194 368 $404 $287 320 1,600 $801 $411 The company's total fixed costs to produce the filtration systems are $203,535. Determine the sales mix as a function of units sold for the three products. (Round answers to 0 decimal places, e.g. 12.) The sales mix as a function of units sold LINK TO TEXT Determine the weighted-average unit contribution margin. (Round answer to 2 decimal places, e.g. 10.25.) Weighted-average unit contribution margin s LINK TO TEXT Determine the total number of units that the company must produce to break even. Break-even point in units units LINK TO TEXT Determine the number of units of each model that the company must produce to break even.

Explanation / Answer

Ans-

Basic Basic plus Premium unit sold 1             912             368            320              1,600
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