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Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows: The number of machine hours
Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows:
The number of machine hours to produce one unit of Brighter is while the number of machine hours for each unit of Cleaner is
Total fixed costs for the manufacture of both products are $
Required:
Determine the breakeven point in total units for Smith Company, based on the assumption that the sales mix on the basis of relative
sales volume in units remains constant. Use the weightedaverage contribution margin approach.
At this breakeven level, how many units of each product must be sold? Due to rounding, the total breakeven units for Requlrement
may differ slightly than In Requirement
Using the Indirect approach, what Is the overall breakeven point in sales dollars? Use the breakeven units computed In Requirement
Complete this question by entering your answers in the tabs below.
Required
At this breakeven level, how many units of each product must be sold? Due to rounding, the total breakeve
Requirement may differ slightly than in Requirement Round your final answers to the nearest whole
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