Compute the number of units of each product that Yard Tools must sell in order to break even under this product mix.
Compute the number of units of each product that Yard Tools must sell in order to break even under this product mix.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 58P: Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and...
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Question
Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows.
Sales Mix |
Unit Contribution
Margin |
||||
Lawnmowers | 20 | % | $30 | ||
Weed-trimmers | 50 | % | $24 | ||
Chainsaws | 30 | % | $42 |
Yard Tools has fixed costs of $4,590,000.
Compute the number of units of each product that Yard Tools must sell in order to break even under this product mix.
Lawnmowers |
|
units | |
Weed-trimmers |
|
units | |
Chainsaws |
|
units |
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