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.
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11EA: Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable...
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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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