Problem 7-49 CVP; Multiple Products; Changes in Costs and Sales Mix (LO 7-4, 7-5)

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Cincinnati Tool Company (CTC) manufactures a line of electric garden tools that are sold in general hardware stores. The company's controller, Will Fulton, has just received the sales forecast for the coming year for CTC's three products: hedge clippers, weeders, and leaf blowers. CTC has experienced considerable variations in sales volumes and variable costs over the past two years, and Fulton believes the forecast should be carefully evaluated from a cost-volume-profit viewpoint. The preliminary budget information for 20x2 follows:

Weeders Hedge Clippers Leaf BlowersUnit sales50,00050,000100,000Unit selling price$28$36$48Variable manufacturing cost per unit131225Variable selling cost per unit546

For 20x2, CTC's fixed manufacturing overhead is budgeted at $2,000,000, and the company's fixed selling and administrative expenses are forecasted to be $600,000. CTC has a tax rate of 40 percent.

Problem 7-49 Part 2

2.Assuming the sales mix remains as budgeted, determine how many units of each product CTC must sell in order to break even in 20x2.(Do not round intermediate calculations.)

Weeders units ________________

Hedge Clippers units_______________

Leaf Blowers unit ________________

Total Unit ______________

Weeders ________units