Brief Exercise 19-8 NoFly Corporation sells three ditferent models of a mosquito

Question

Brief Exercise 19-8 NoFly Corporation sells three ditferent models of a mosquito "zapper. Model A12 sells for $52 and has variable costs of $41. Model B22 sells for $109 and has variable costs of $75. Model C124 sells for $403 and has variable costs of S310. The sales mix of the three models is A12, 58%; B22, 2796; and C124, 15%. If the company has fixed costs of S195,946, how many units of each model must the company sell in order to break even? (Round Per unit values to 2 decimal palces, e.g. 15.25 and final answers to 0 decimal places, eg. 5,275.) Model A12 B22 C124 Total break-even units Click if you would like to Show Work for this question: Open Show Work Question Attempts: 0 of 15 used BAVE FOR LATER SUBMIT ANSWER SUBMIT ANSWER

Explanation / Answer

Break even point in units

= Fixed costs / Weighted average contribution margin per unit

= $195,946 / $29.51

= 6,639.98 or 6,640 units

Calculations Particulars A12 B22 C124 Total A Selling price per unit 52 109 403 B Variable costs per unit 41 75 310 C = A - B Contribution per unit 11 34 93 D Sales mix 58% 27% 15% E = C x D Weighted contribution margin 6.38 9.18 13.95 29.51

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