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 627 $254 $198 Basic Plus Premium Total Units sold Selling price Variable cost 242 $396 $290 231 1,100 $798 $418 The company's total fixed costs to produce the filtration systems are $148,544 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 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 c

Explanation / Answer

Computation of Sales as function of units Sold for three product Particulars Basic Basic Plus Premium Total Units Sold 627 242 231 1100 Selling Price $254.00 $396.00 $798.00 Less: Variable Cost $198.00 $290.00 $418.00 Contribution $56.00 $106.00 $380.00 Total Contribution $35,112.00 $25,652.00 $87,780.00 $148,544.00 Sales Mix % 24% 17% 59% Computation of Weighted Average Contribution per Unit Total Contribution 148544 Unit Sold 2000 Weighted Average Contribution 74.272 (148544/2000) Computation of Breakeven sales Fixed Cost $148,544.00 Weighted Average Contribution 74.272 Break even Sales ( in Units) 2000 (148544/2000) Computation of Sales Mis for models to achieve Brakeven Particular Sales Mix% Unit Basic 24% 480 Basic Plus 17% 340 Premium 59% 1180 Total 2000

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