Solution-Compute the break-even point in units for each

Compute the break-even point in units for each product

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Reference no: EM133021867

Problem - B&C Ltd sells three types of electronic garden tools - Weeders, Hedge Clippers, and Leaf blowers. Selected information on the rackets is given below:

	Weeders	Hedge clippers	Leaf blowers
Sales in units (per annum)	50,000	30,000	20,000
Unit selling price	$120	$250	$380
Variable manufacturing cost per unit	$50	$120	$220
Variable selling cost per unit	$20	$50	$60

All sales are made through the company's own retail outlets. The company has the following fixed costs:

Per annum
Fixed manufacturing cost	$600,000
Fixed selling and administrative costs	$76,200
Total	$676,200

Required -

(a) Calculate the unit contribution margin for each product type.

(b) Calculate the weighted average unit contribution margin, assuming a constant sales mix.

(d) Compute the break-even point in units for each product.

(e) Determine the total number of units that must be sold to obtain a target profit of $82,800 for the company.

Reference no: EM133021867

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Compute the break-even point in units for each product : B&C Ltd sells three types of electronic garden tools - Weeders, Hedge Clippers, and Leaf blowers. Compute the break-even point in units for each product

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Compute the break-even point in units for each product

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