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If you could answer it please help, thank you!!! Decision Making. Pure Water Products (15 points) Multiproduct CVP and e is attached to the faucet

If you could answer it please help, thank you!!! image text in transcribed
Decision Making. Pure Water Products (15 points) Multiproduct CVP and e is attached to the faucet and produces two types of water filters cleans all water that passes through the faucet. The other is a g. The $80 and has variable 90 and has variable pitcher-cum-filter that on ly purifies water meant for drinkin sold for costs of $20. The pitcher-cum-filter sells for $ costs of $25. Pure Water sells two pitchers sold. The annual fixed costs for the firm equal $945, 000. faucet models for every three REQUIRED: What is the breakeven point in unit sales and sales revenue dollars for each type of filter at the current sales mix? 2. Pure Water is considering buying new production equipment. The new production equipment will increase fixed costs by $181, 400 per year and will decrease the variable costs of the faucet and the itcher units by $5 and $9 respectively. Assume the same sales mix in units. What is now the breakeven point in unit sales and sales revenue dollars for each type of filter at the same mix in units? current sales 3. Assume the same sales mix in units. At what total unit sales level would Pure Water be indifferent between using the old equipment and buying the new production equipment? If total unit sales of both models are expected to be 30,000 units, should Pure Water buy the new production equipment? Why, or why not? Briefly explain your answer, with reference to your supporting calculations under requirement 3. above. Answer Sheet, Part II, Problem 4

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