Question
Wildhorse, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $37 and are sold for $52. Glass pitchers cost
Wildhorse, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $37 and are sold for $52. Glass pitchers cost $46 and are sold for $67. All other costs are fixed at $1,611,792 per year. Current sales plans call for 22,960 plastic pitchers and 68,880 glass pitchers to be sold in the coming year.
How many pitchers of each type must be sold to break even in the coming year? (Use contribution margin per unit to calculate breakeven units.) Plastic Pitchers: ?????
Glass Pitchers: ??????
Wildhorse, Inc., has just received a sales catalog from a new supplier that is offering plastic pitchers for $35. What would be the new contribution margin per unit if managers switched to the new supplier? Contribution margin per unit plastic pitchers:??? Contribution margin per unit glass pitchers ?????
What would be the new breakeven point if managers switched to the new supplier? (Use contribution margin per unit to calculate breakeven units. Round answers to 0 decimal places, e.g. 25,000.) Breakeven in Units Plastic Pitchers: ??? Breakeven in Units Glass Pitchers????
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