=+4-47 KKK Multiproduct CVP and decision making OBJECTIVES 1, 2, 4, 7 Pure Water Products produces two types of water filters. One attaches to the tap and cleans all water that passes through the tap.

The other is a jug-cum-filter that only purifies water meant for drinking.

The unit that attaches to the tap is sold for $80 and has variable costs of $20.

The jug-cum-filter sells for $90 and has variable costs of $25.

Pure Water sells two tap models for every three jugs sold. Fixed costs equal $945000.

162 Chapter 4: Cost–volume–profit analysis M04_HORN3377_02_LT_C04.indd 162 2/09/13 3:22 PM Required