*Do It! Review 19-2 Snow Cap Springs produces and sells water filtration systems

Question

*Do It! Review 19-2 Snow Cap Springs produces and sells water filtration systems for homeowners. Information regarding its three models is shown below Basic Basic Plus Premium Total Units sold Selling price Variable cost 910 $247 $195 280 $400 $284 2101,400 $799 $411 The company's total fixed costs to produce the filtration systems are $126,720 Determine the sales mix as a function of units sold for the three products. (Round answers to 0 decimal places, e.g. 12.) Basic Basic Plus Premium The sales mix as a function of units sold Determine the weighted-average unit contribution margin. (Round answer to 2 decimal places, e.g. 10.25.) Weighted-average unit contribution margin Determine the total number of units that the company must produce to break even Break-even point in units Determine the number of units of each model that the company must produce to break even units Basic Basic Plus Premium units units units Question Attempts: 0 of 3 used

Explanation / Answer

The sales mix as a function of units sold: Basic 65% =910/1400 Basic plus 20% =280/1400 Premium 15% =210/1400 Weighted average unit contribution margin=(247-195)*65%+(400-284)*20%+(799-411)*15%= $115.2 Break even point in units=126720/115.2= 1100 Basic 715 =1100*65% Basic plus 220 =1100*20% Premium 165 =1100*15%

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.