Calculate the breakeven point in terms of units. Chad Windows Must Windows Total number of units to break even
Calculate the breakeven point in terms of units. Chad Windows Must Windows Total number of units to break even
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Best Windows plans to sell two different brands of windows-Chad and Musk-and budgets th
(Click the icon to view the budgets.)
Calculate the breakeven point for Best Windows in terms of (a) the number of units sold and (b)
is a ratio of
Chad Windows
Musk Windows
Total
4
1 unit(s) of Musk Windows.
Next, calculate the contribution margin of the bundle.
Number of Units of
Chad Windows and
Musk Windows in
Each Bundle
:
1 That is, we think of Best Windows selling a bundle of
Chad Windows
Must Windows
+
Total number of units to break even
Contribution Margin
per unit for Chad
Windows and Musk
Windows
200
+
Calculate the breakeven point in terms of units.
200
Contribution
Margin of the
Bundle
800
Determine the formula used to calculate the breakeven point of the bundle. Then, enter the am
Fixed costs
165,000
Contribution margin per bundle
1,000
$
200
1,000
4
=
Data table
Expected sales
Revenues, $650 and $400 per
unit
Variable costs, $450 and $200
per unit
Contribution margin, $200 and
$200 per unit
Fixed costs
= Breakeven point in bundles
165
Print
$
Chad
Windows
6,000
3,900,000 $
2,700,000
1,200,000 $
Musk
Windows
Done
1,500
Total
300,000
7,500
600,000 $4,500,000
300,000 3,000,000
1,500,000
165,000
I
X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4bfd0b24-8a34-4f7d-b136-d8a4bd372e6f%2Fdc9a2a80-0d20-40c3-b3d3-e560f13de5ea%2F58thkfb_processed.png&w=3840&q=75)
Transcribed Image Text:Best Windows plans to sell two different brands of windows-Chad and Musk-and budgets th
(Click the icon to view the budgets.)
Calculate the breakeven point for Best Windows in terms of (a) the number of units sold and (b)
is a ratio of
Chad Windows
Musk Windows
Total
4
1 unit(s) of Musk Windows.
Next, calculate the contribution margin of the bundle.
Number of Units of
Chad Windows and
Musk Windows in
Each Bundle
:
1 That is, we think of Best Windows selling a bundle of
Chad Windows
Must Windows
+
Total number of units to break even
Contribution Margin
per unit for Chad
Windows and Musk
Windows
200
+
Calculate the breakeven point in terms of units.
200
Contribution
Margin of the
Bundle
800
Determine the formula used to calculate the breakeven point of the bundle. Then, enter the am
Fixed costs
165,000
Contribution margin per bundle
1,000
$
200
1,000
4
=
Data table
Expected sales
Revenues, $650 and $400 per
unit
Variable costs, $450 and $200
per unit
Contribution margin, $200 and
$200 per unit
Fixed costs
= Breakeven point in bundles
165
Print
$
Chad
Windows
6,000
3,900,000 $
2,700,000
1,200,000 $
Musk
Windows
Done
1,500
Total
300,000
7,500
600,000 $4,500,000
300,000 3,000,000
1,500,000
165,000
I
X
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