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Question #3 Power on Demand, Inc. sells two models of generators. The two product models and other relevant information is shown below in the
Question #3 Power on Demand, Inc. sells two models of generators. The two product models and other relevant information is shown below in the income statements for the most recent operating year of 2023: Power Master Power Smart Total Sales $350,000 $650,000 $1,000,000 Variable costs 140,000 338,000 478,000 Contribution margin $210,000 $312,000 522,000 Fixed costs 265,000 Net income $ 257,000 Required: (a) Determine the sales mix and contribution margin ratio for each model. (b) Calculate the company's weighted-average contribution margin ratio. (c) Calculate the company's breakeven point in dollars. (d) Determine the sales level, in dollars, for each model at the breakeven point.
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