Exercise 19-6 Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws.

Question

Exercise 19-6 Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows. Unit Contribution Margin Lawnmowers Weed-trimmers Chainsaws Sales Mix 20 % 5096 30 % $34 $24 $37 Yard Tools has fixed costs of $4,544,800 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.) Lawnmowers Weed-trimmers Chainsaws units units units Click if you would like to Show Work for this question: LINK TO TEXT

Explanation / Answer

Products Sales Mix Unit Contribution Margin Weighted Average Contribution Margin PU Lawnmowers 20% 34.00 6.80 Weed-Trimmers 50% 24.00 12.00 Chainsaws 30% 37.00 11.10 Total 29.90 Fixed Costs 4544800 Break Even Point= Fixed Cost/Weighted Average Contribution Margin PU Break Even Point= 4544800/29.90 Break Even Point= 152000 Units Products Calculation Units Lawnmowers (152000*20%) 30400 Weed-Trimmers (152000*50%) 76000 Chainsaws (152000*30%) 45600 Total 152000

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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