Question
3: Biden Manufacturing produces and sells water filtration systems for homeowners. Information regarding its three models is shown below. Units sold Selling price Variable cost
3: Biden Manufacturing produces and sells water filtration systems for homeowners. Information regarding its three models is shown below. Units sold Selling price Variable cost Basic 840 $250 $200 Basic Plus 350 Premium 210 Total 1,400 $400 $240 $800 $560 The company's total fixed costs to produce the filtration systems are $160,000. a. Determine the overall breakeven point for the company in sales dollars. [2 Marks] b. Determine the total number of units the company must produce to break even. [4 marks] c. Determine the number of units of each model that the company must produce to break even. [2 Marks]
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