Question
2. Ryan's Landscaping sells a quality brand of hoes, shovels, and rakes in a sales mix of 2:4:2. The company's fixed costs are $61,600. Product
2. Ryan's Landscaping sells a quality brand of hoes, shovels, and rakes in a sales mix of 2:4:2. The company's fixed costs are $61,600. Product data include the following:
|
|
Unit Sales Price |
Unit Variable Costs |
| Hoes | $12 | $8 |
| Shovels | 15 | 7 |
| Rakes | 16 | 8 |
a. Compute the weighted-average contribution margin
b. Determine the weighted-average breakeven point
c. Calculate the breakeven point for each product.
d. Determine the breakeven point in sales dollars.
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Financial Accounting Reporting And Analysis
Authors: Michael Diamond, James Stice, Earl K. Stice, James D. Stice
5th Edition
0538873019, 978-0538873017
