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Please help with explanation if possible Salvadores Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Their
Please help with explanation if possible
Salvadores Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Their sales mix is reflected in the ratio 6:3:2. If annual fixed costs shared by the three products are $170,500, how many units of each product will need to be sold in order for Salvadores to break even? Feedback Check My Work Determine the contribution margin for each item. Multiply the contribution margin by the corresponding ratio factor for each item. Add all three amounts to obtain the overall unit contribution margin. The break-even per composite unit is determined by dividing the overall unit contribution margin into the annual fixed costs. Use these amounts to apply the ratio to determine the number of units per productStep by Step Solution
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