Question
Annual expected sales:Sale of sprinklers410,300units at $27.00Sale of valves1,398,750units at $11.00Sale of controllers55,950units at $43.00 Variable manufacturing cost per unit:Sprinklers$14.00Valves$8.00Controllers$30.00Fixed manufacturing overhead cost (total)$688,000 Variable
Annual expected sales:Sale of sprinklers410,300units at $27.00Sale of valves1,398,750units at $11.00Sale of controllers55,950units at $43.00
Variable manufacturing cost per unit:Sprinklers$14.00Valves$8.00Controllers$30.00Fixed manufacturing overhead cost (total)$688,000
Variable selling and administrative expenses per unit:Sprinklers$1.00Valves$1.00Controllers$3.00Fixed selling and administrative expenses (total)$1,534,664
Determine the sales mix based on unit sales for each product.
SprinklersValvesControllers
sprinklers values controllers
Sales mix % % %
Using the annual expected sales for these products, determine the weighted-average unit contribution margin for these three products.(Round answer to two decimal places, e.g. 5.25.)
Weighted-Average Unit Contribution Margin$
Assuming the sales mix remains the same, what is the break-even point in units for these products?(Round answer to 0 decimal places, e.g. 2,520.)
Break-even Point in Unitsunits
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