below is the question I have answered however need help with part c

Question 2

a.Calculate the break-even point in units, assuming that the planned sales mix is maintained.

The budgeted sales mix is3 for double mattress units to 1 king mattress unit xContribution margin:

Contribution per mix= (3 x 20) + (1 x 30) = 90

The break-even number of units is:

Fixed costs 7,200,000/90 = 80,000

Double

3 x 80,000 = 240,000

King

1 x 80,000 = 80,000

Total

320,000

b.Suppose 440,000 units are sold, but only 44,000 are King. Calculate the break-even point for this new sales mix.

If the sale units change so that 440,000 are sold and only 44,000 are king, then the new proportions become as 9 double to 1 king:

Contribution per mix= (9 x 20) + (1 x 30) = 210

The break-even number of units is:

Fixed costs 7,200,000/210 = 34,285

Double

9 x 34,285= 308,565

King

1 x 34,285= 34,285

Total

342,850

c.Comment on your findings from part a and part b.