Question
Snow Cap Springs produces and sells water filtration systems for homeowners. Information regarding its three models is shown below. Basic Basic Plus Premium Total Units
Snow Cap Springs produces and sells water filtration systems for homeowners. Information regarding its three models is shown below.
Basic | Basic Plus | Premium | Total | |||||
Units sold | 912 | 368 | 320 | 1,600 | ||||
Selling price | $248 | $404 | $801 | |||||
Variable cost | $194 | $287 | $411 |
The companys total fixed costs to produce the filtration systems are $203,535.
Determine:
The sales mix as a function of units sold for the three products (round answers to 0 decimal places)
The weighted-average unit contribution margin (round answers to 2 decimal places)
The total number of units that the company must produce to break even
The number of units of each model that the company must produce to break even
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