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Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows: BrighterCleaner Sales volume in units
Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows:
BrighterCleaner
Sales volume in units 7201,080
Unit sales price $615$1,800
Unit variable cost 246810
The number of machine-hours to produce one unit of Brighter is 1 while the number of machine-hours for each unit of Cleaner is 2. Total fixed costs for the manufacture of both products are $268,000.
How do I determine sales mix based on volume?
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