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Drayton Windows plans to sell two different brands of windows-Chad and Musk and budgets the following: (Click the icon to view the budgets.) Calculate
Drayton Windows plans to sell two different brands of windows-Chad and Musk and budgets the following: (Click the icon to view the budgets.) Calculate the breakeven point for Drayton 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 is a ratio of 1 unit(s) of Musk Windows. 3,900 units of Chad Windows sold for every 1,300 units of Musk Windows sold, 3 : 1 That is, we think of Drayton Windows selling a bundle of 3 units of Chad Windows and Next, calculate the contribution margin of the bundle. Number of Units of Chad Windows and Musk Windows in Each Bundle Contribution Margin per unit for Chad Windows and Musk Contribution Margin of the Windows Bundle Chad Windows Musk Windows Total Data table Expected sales Revenues, $600 and $250 per unit Variable costs, $550 and $200 per unit Contribution margin, $50 and $50 per unit Fixed costs Operating income Chad Windows Musk Windows Total 3,900 1,300 5,200 2,340,000 $ 2,145,000 325,000 $ 2,665,000 260,000 2,405,000 $ EA 195,000 $ 65,000 260,000 160,000 100,000 Check answer
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