Question
Required information Problem 7-49 CVP; Multiple Products; Changes In Costs and Sales Mix (LO 7-4, 7-5) [The following Information applies to the questions displayed
Required information Problem 7-49 CVP; Multiple Products; Changes In Costs and Sales Mix (LO 7-4, 7-5) [The following Information applies to the questions displayed below.] 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 belleves the forecast should be carefully evaluated from a cost-volume-profit viewpoint. The preliminary budget Information for 20x2 follows: Weeders Unit sales 50,000 Hedge Clippers 50,000 Leaf Blowers 100,000 Unit selling price $ 28 $ 36 $ Variable manufacturing cost per unit 13 12 48 25 Variable selling cost per unit 5 4 6 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.) Product Line Sales Weeders units Hedge Clippers units Leaf Blowers units Total units
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