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 | 580 | 220 | 200 | 1,000 | ||||
Selling price | $251 | $404 | $800 | |||||
Variable cost | $200 | $283 | $417 |
The companys total fixed costs to produce the filtration systems are $185,920.
Determine the sales mix as a function of units sold for the three products.
Basic | Basic Plus | Premium | ||||
The sales mix as a function of units sold | % | % | % |
eTextbook and Media
Determine the weighted-average unit contribution margin. (Round answer to 2 decimal places, e.g. 10.25.)
Weighted-average unit contribution margin | $Type your answer here |
eTextbook and Media
Determine the total number of units that the company must produce to break even.
Break-even point in units | Type your answer here | units |
eTextbook and Media
Determine the number of units of each model that the company must produce to break even.
Basic | units | ||
Basic Plus | units | ||
Premium | units |
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