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If the company's fixed costs are $235,800, how many units of each model must the company sell in order to break even? Units of A12 Units of B22 Units of C124 Break-even in units total. units units units units

If the company's fixed costs are $235,800, how many units of each model must the company sell in order to break even? Units of A12 Units of B22 Units of C124 Break-even in units total. units units units units

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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**Sunland Corporation Mosquito Zapper Models: Contribution Margin Analysis** Sunland Corporation offers three mosquito zapper models: A12, B22, and C124. Below is a breakdown of each model's pricing and costs, along with the sales mix, which is a crucial component in calculating the weighted-average unit contribution margin. ### Model Details: - **Model A12:** - Selling Price: $60 - Variable Costs: $50 - Sales Mix: 65% - **Model B22:** - Selling Price: $125 - Variable Costs: $90 - Sales Mix: 15% - **Model C124:** - Selling Price: $420 - Variable Costs: $315 - Sales Mix: 20% ### Weighted-Average Unit Contribution Margin The weighted-average unit contribution margin is a key financial metric that factors in the proportion of each model's sales to determine the overall profitability per unit sold. - **Calculated Weighted-Average Unit Contribution Margin:** $32.75 This value has been derived considering the contribution margins of each model, weighted according to their respective sales mix percentages. --- The solution acknowledges the accurate calculation, ensuring that the result is stored correctly for reference and further strategic decisions.
Transcribed Image Text:**Sunland Corporation Mosquito Zapper Models: Contribution Margin Analysis** Sunland Corporation offers three mosquito zapper models: A12, B22, and C124. Below is a breakdown of each model's pricing and costs, along with the sales mix, which is a crucial component in calculating the weighted-average unit contribution margin. ### Model Details: - **Model A12:** - Selling Price: $60 - Variable Costs: $50 - Sales Mix: 65% - **Model B22:** - Selling Price: $125 - Variable Costs: $90 - Sales Mix: 15% - **Model C124:** - Selling Price: $420 - Variable Costs: $315 - Sales Mix: 20% ### Weighted-Average Unit Contribution Margin The weighted-average unit contribution margin is a key financial metric that factors in the proportion of each model's sales to determine the overall profitability per unit sold. - **Calculated Weighted-Average Unit Contribution Margin:** $32.75 This value has been derived considering the contribution margins of each model, weighted according to their respective sales mix percentages. --- The solution acknowledges the accurate calculation, ensuring that the result is stored correctly for reference and further strategic decisions.
The image contains a text regarding the calculation of break-even points for different models sold by a company. The company has fixed costs amounting to $235,800. The task is to determine how many units of each model must be sold to achieve a break-even point. The models listed are: - Units of A12: [Blank space for numerical input] units - Units of B22: [Blank space for numerical input] units - Units of C124: [Blank space for numerical input] units There is also a section to calculate: - Break-even in units total: [Blank space for numerical input] units The document is structured to facilitate input for the number of units required for each model to reach the break-even point, considering the fixed costs provided.
Transcribed Image Text:The image contains a text regarding the calculation of break-even points for different models sold by a company. The company has fixed costs amounting to $235,800. The task is to determine how many units of each model must be sold to achieve a break-even point. The models listed are: - Units of A12: [Blank space for numerical input] units - Units of B22: [Blank space for numerical input] units - Units of C124: [Blank space for numerical input] units There is also a section to calculate: - Break-even in units total: [Blank space for numerical input] units The document is structured to facilitate input for the number of units required for each model to reach the break-even point, considering the fixed costs provided.
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