Question
Pharoah Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix (as a percentage of total units) and unit contribution margin are as follows. Sales Mix
Pharoah Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix (as a percentage of total units) and unit contribution margin are as follows.
| Sales Mix | Unit Contribution Margin | ||||
|---|---|---|---|---|---|
| Lawnmowers | 20 | % | $ 30 | ||
| Weed-trimmers | 50 | % | $ 24 | ||
| Chainsaws | 30 | % | $ 42 | ||
Pharoah Tools has fixed costs of $ 4,590,000. Compute the number of units of each product that Pharoah Tools must sell in order to break even under this product mix.
| Break-even point in units | |||
|---|---|---|---|
| Lawnmowers | enter a number of units | units | |
| Weed-trimmers | enter a number of units | units | |
| Chainsaws | enter a number of units | units | |
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
12th Edition
9780073526706
