Question
Sandhill, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $40 and are sold for $55. Glass pitchers cost
Sandhill, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $40 and are sold for $55. Glass pitchers cost $49 and are sold for $70. All other costs are fixed at $1,906,632 per year. Current sales plans call for 27,160 plastic pitchers and 81,480 glass pitchers to be sold in the coming year. Please show all work (Scroll left and right to see problem
How many pitchers of each type must be sold to break even in the coming year? (Use contribution margin per unit to calculate breakeven units.)
Plastic pitchers | Enter a number of plastic pitchersEnter a number of plastic pitchersEnter a number of plastic pitchers | |
---|---|---|
Glass pitchers | enter a number of Glass pitchersenter a number of Glass pitchersenter a number of Glass pitchers |
Sandhill, Inc., has just received a sales catalog from a new supplier that is offering plastic pitchers for $38. What would be the new contribution margin per unit if managers switched to the new supplier?
Plastic pitchers | Glass pitchers | |||
---|---|---|---|---|
Contribution margin per unit | $Enter a dollar amount Enter a dollar amountEnter a dollar amount | $Enter a dollar amount Enter a dollar amountEnter a dollar amount |
What would be the new breakeven point if managers switched to the new supplier? (Use contribution margin per unit to calculate breakeven units. Round answers to 0 decimal places, e.g. 25,000.)
Plastic pitchers | Glass pitchers | |||
---|---|---|---|---|
Breakeven in Units | Enter breakeven in Units rounded to 0 decimal placesEnter breakeven in Units rounded to 0 decimal placesEnter breakeven in Units rounded to 0 decimal places | Enter breakeven in Units rounded to 0 decimal placesEnter breakeven in Units rounded to 0 decimal placesEnter breakeven in Units rounded to 0 decimal places |
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