Question
Cullumber, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $35 and are sold for $50. Glass pitchers cost
Cullumber, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $35 and are sold for $50. Glass pitchers cost $44 and are sold for $65. All other costs are fixed at $2,958,228 per year. Current sales plans call for 42,140 plastic pitchers and 126,420 glass pitchers to be sold in the coming year.
How many pitchers of each type must be sold to break even in the coming year? (Use contribution margin per unit to calculate breakeven units.)
Glass $
Plastic $
Cullumber, Inc., has just received a sales catalog from a new supplier that is offering plastic pitchers for $33. What would be the new contribution margin per unit if managers switched to the new supplier?
Plastic Glass Contribution Margin Per Unit
What would be the new breakeven point if managers switched to the new supplier? (Use contribution margin per unit to calculate breakeven units. Round answers to 0 decimal places, e.g. 25,000.)
Plastic Glass Breakeven in Units
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