Question
Waterways has a sales mix of sprinklers, valves, and controllers as follows. Annual expected sales: Sale of sprinklers 488,856 units at $27.00 Sale of valves
Waterways has a sales mix of sprinklers, valves, and controllers as follows. Annual expected sales: Sale of sprinklers 488,856 units at $27.00 Sale of valves 1,466,568 units at $11.00 Sale of controllers 81,476 units at $43.00 Variable manufacturing cost per unit: Sprinklers $14.00 Valves $8.00 Controllers $30.00 Fixed manufacturing overhead cost (total) $799,000 Variable selling and administrative expenses per unit: Sprinklers $1.00 Valves $1.00 Controllers $3.00 Fixed selling and administrative expenses (total) $1,520,408 Determine the sales mix based on unit sales for each product. Sprinklers Valves Controllers Sales mix % % % eTextbook and Media Using the annual expected sales for these products, determine the weighted-average unit contribution margin for these three products. (Round answer to two decimal places, e.g. 5.25.) Weighted-Average Unit Contribution Margin $ eTextbook and Media Assuming the sales mix remains the same, what is the break-even point in units for these products? (Round answer to 0 decimal places, e.g. 2,520.) Break-even Point in Units
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started