Question
Kitchenware, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $15and are sold for $30. Glass pitchers cost $24and
Kitchenware, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $15and are sold for $30. Glass pitchers cost $24and are sold for $45. All other costs are fixed at $982,800per year. Current sales plans call for14,000plastic pitchers and42,000glass pitchers to be sold in the coming year.
(a)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.)
I can't seem to figure out how to find the break even for the first part.
I used 9898000/15 for plastic and 989800/21 for glass. Neither was the correct answer.
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