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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff1ca31c4-4f62-4fd3-897a-e3d7b7fe9694%2Faf0c71c0-42ec-4c9e-9bd2-c44a4f729312%2F1cpup0c_processed.jpeg&w=3840&q=75)
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.
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps

Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education