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Waterways has a sales mix of sprinklers, valves, and controllers as follows. Annual expected sales: Sale of sprinklers 470,558 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 | 470,558 units at $27.00 | |
Sale of valves | 1,625,564 units at $11.00 | |
Sale of controllers | 42,778 units at $43.00 |
Variable manufacturing cost per unit: | ||||
Sprinklers | $14.00 | |||
Valves | $8.00 | |||
Controllers | $30.00 | |||
Fixed manufacturing overhead cost (total) | $743,000 |
Variable selling and administrative expenses per unit: | ||||
Sprinklers | $1.00 | |||
Valves | $1.00 | |||
Controllers | $3.00 | |||
Fixed selling and administrative expenses (total) | $1,714,296 |
' Sales mix: Sprinklers (27%) Valves (76%) Controllers (2%) Weighted- Average unit Contribution Margin $4.36
Assuming the sales mix remains the same, what is the break-even point in units for these products? Break-even point in units = |
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