Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows:

Brighter Cleaner

Sales volume in units $400600$

Unit sales price $ $1,000$ $ $1,000$

Unit variable cost $200700$

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 $$295,000.$

Required:

$1.$ 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 weighted$-$average contribution margin approach.

$2.$ At this breakeven level, how many units of each product must be sold? Due to rounding, the total breakeven units for Requirement $2$ may differ slightly than in Requirement $1.$

$3.$ Using the Indirect approach, what is the overall breakeven point in sales dollars? Use the breakeven units computed in Requirement $1.$

Contribution Margin

Sales mix $($based on units$)$

weighted average CM per unit

total fixed costs to be recovered

total units to breakeven