question 1& 3

Problem 2: Multiproduct CVP and Decision Making: Bear Essentials produces two types of water filters. One attaches to the faucet and cleans all water that passes through the faucet. The other is a pitcher-with-filter that only purifies water meant for drinking. 120 The unit that attaches to the faucet is sold for $100 and has variable costs of $35. 2015 The pitcher-with-filter sells for $120 and has variable costs of $30. 5.1 Bear Essentials sells two faucet models for every three pitchers sold. Fixed costs equal $1,200,000 1. What is the breakeven point in unit sales and dollars for each type of filter at the current sales mix? 2. Bear Essentials is considering the purchase of new production equipment. The new equipment will increase fixed cost by $208,000 per year and will decrease the variable cost of the faucet and the pitcher units by $5 and $10, respectively. Assuming the same sales mix, how many of each type of filter does Bear Essentials need to sell to break even if the new equipment is purchased. 3. Assuming the same sales mix, at what total sales level would Bear Essentials be indifferent between using the old equipment and buying the new equipment? If total sales are expected to be 24,000 units, should Bear Essentials buy the new production equipment? Problem 3: Sales mix, three products: Fruiser's Belts has three product lines of belts-A, B, and C-with contribution margins of $ 2, and S1, respectively. The president foresees sales of 200,000 units in the coming period, insisting of 20,000 units of A, 100,000 units of B, and 80,000 units of C. The company's fi sts for the period are $255,000. nint in units assuming that the given sales mix is