Current Designs manufactures two different types of kayaks, rotomolded kayaks and composite kayaks. The following information is available for each product line.

		Rotomolded		Composite
Unit selling price		$1,100		$2,000
Unit variable costs		$660		$1,340

The companys fixed costs are $900,240. An analysis of the sales mix identifies that rotomolded kayaks make up 80% of the total units sold.

(a)

Correct answer icon

Your answer is correct.

Determine the weighted-average unit contribution margin for Current Designs.

Weighted-average unit contribution margin

$enter the weighted-average unit contribution margin in dollars

Attempts: 1 of 3 used

(b)

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Your answer is correct.

Determine the break-even point in sales units for Current Designs and identify how many units of each type of kayak will be sold at the break-even point.

Break-even sales

enter the break-even sales in number of units

units

		Rotomolded Kayaks			Composite Kayaks
Break-even sales distribution		enter a number of units	units		enter a number of units	units

Attempts: 2 of 3 used

PLEASE ONLY ANSWER BELOW!!(c)

Assume that the sales mix changes, and rotomolded kayaks now make up 70% of total units sold. Calculate the total number of units that would need to be sold to earn a net income of $2,201,540 and identify how many units of each type of kayak will be sold at this level of income.

Required sales

enter the required sales in number of units

units

		Rotomolded Kayaks			Composite Kayaks
Required sales distribution		enter a number of units	units		enter a number of units	units