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Hello, I'm trying to figure out this exercise but I'm having a hard time. Any help would be greatly appreciated! Breakeven Point for Multiple Products
Hello,
I'm trying to figure out this exercise but I'm having a hard time. Any help would be greatly appreciated!
Breakeven Point for Multiple Products E8A. Eastside Aquarium, Inc., manufactures and sells aquariums, water pumps, and air filters. The sales mix is 1:2:2 (i.e., for every one aquarium sold, two water pumps |and two air filters are sold). Using the contribution margin approach, find the break- cven point in units for each product. The company's fixed costs are $52,000. Other information follows. Variable Costs per Unit $25 Selling Price per Unit $60 Aquariums 12 Water pumps 20 Air filters 3 10 CH -EA. Breakeven Aalysis for Muldple Producty Welghted Percentage of Average Sales Contribution Yariable Selling CM Maria (CM) Mit Costs Priee Aquariums Water pump Alr fiters Weighted-avernge contribution margin Welghted-Average Breakeven Peint Units Breakeven polnt for cach product Weighted-Avernge Breakeven Polnt Breakeven Polnt Sales Mia Units Units Aquariums Units Units Water pamps Units Units Alr fters Check Catrbation margin Aquariems Water pumps Air fiiers Total contributien margin Le fed costs ProfitStep by Step Solution
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