Cali Windows plans to sell two different brands of windowslong dashChad and Musklong dashand budgets the following:

Chad windows Musk Windows Total

Expected sales 4,400 2,200 6,600

Revenues $850

and $600 per unit 3,740,000 1,320,000 5,060,000

Variable costs, $750

and $550 per unit 3,300,000 1,210,000 4,510,000

Contribution Marg, $100

and $50 per unit 440,000 110,000 550,000

Fixed costs 185,000

Operating Income 365,000

Calculate the breakeven point for Cali Windows in terms of (a) the number of units sold and (b) revenues.

Begin by determining the sales mix. (The windows can only be sold in whole units. Enter the ratios as whole numbers.)

A budgeted sales mix of 4,400 units of chad windows sold 2,200 units of musk windows sold, is a ratio 2 : 1 that is we think of cali windows selling a 2 units of chad windows and 1 units of must windows.

Next, calculate the contribution margin of the bundle:

Number of Units of Chad Windows and Musk Windows in Each Bundle

FOR CHAD WINDOWS:

MUSK WINDOWS:

Contribution Margin per unit for Chad Windows and Musk Windows ,

FOR CHAD WINDOWS:

MUSK WINDOWS:

Contribution Margin of the Bundle

FOR CHAD WINDOWS:

MUSK WINDOWS: