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Aquatic Aquarium, Inc., manufactures and sells aquariums, water pumps, and air filters using a sales mix of 1:2:2. The companys fixed costs are $26,000. Other
Aquatic Aquarium, Inc., manufactures and sells aquariums, water pumps, and air filters using a sales mix of 1:2:2. The companys fixed costs are $26,000. Other information is as follows: Selling Price Variable Cost per unit per unit Aquariums $60 $25 Water pumps 20 12 Air filters 10 3
Required: a) Determine the breakeven point in sales dollars for each product.
b) If a total of 6,000 units is sold in the proportion of the sales mix, determine the operating income.
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