Exercise 19-6 XYour answer is incorrect. Try again. Yard Tools manufactures lawn
ID: 2525170 • Letter: E
Question
Exercise 19-6 XYour answer is incorrect. Try again. Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows. Unit Contribution Margin Sales Mix 20% 50% 30% S29 $25 S37 Weed-trimmers Chainsaws Yard Tools has fixed costs of $4,321,800 Compute the number of units of each product that Yard Tools must sell in order to break even under this product mix. (Use the Weighted-Average Unit Contribution Margin Ratio rounded to 2 decimal places e.g. 0.25 and round final answers to 0 decimal places, e.g. 2,510.) 88200 units 220500 units Chainsaws 132300 units Click if you would like to Show Work for this question: LINK TO TEXT Question Attempts: 1 of 15 used SAVE FOR LATER SUBMIT ANSWERExplanation / Answer
WeightedContribution margin=Respective Contribution margin*Respective Sales mix
=(29*0.2)+(25*0.5)+(37*0.3)=$29.4
Hence total breakeven=Fixed cost/Weighted Contribution margin
=(4321800/29.4)=147000 units
Lawnmowers(147000*0.2) 29400 units Weed-trimmers(147000*0.5) 73500 units Chainsaws(147000*0.3) 44100 units.Related Questions
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