Multiple-Product Break-even

Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals $146,000. Each door handle sells for $12 and has variable cost of $9; each trim kit sells for $8 and has variable cost of $5.

Required:

1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? Round the ratios to three decimal places.

	Door Handles		Trim Kits
Contribution margin per unit
Contribution margin ratio

2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? $fill in the blank 5

3. How many door handles and how many trim kits must be sold for Polaris to break even based on the sales provided in requirement 2?

Door handles
Trim kits