Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows:
Sales volume in units
Unit sales price
Unit variable cost
The number of machine hours to produce one unit of Brighter is while the number of machine hours for each unit of Cleaner is Total
fixed costs for the manufacture of both products are $
Required:
Determine the breakeven point in total units for Smith Company, based on the assumption that the sales mix on the basis of relative
sales volume in units remains constant. Use the weightedaverage contribution margin approach.
At this breakeven level, how many units of each product must be sold? Due to rounding, the total breakeven units for Requirement
may differ slightly than in Requirement
Using the Indirect approach, what is the overall breakeven point in sales dollars? Use the breakeven units computed in Requirement
Complete this question by entering your answers in the tabs below.
Required
Required
Determine the breakeven point in total units for Smith Company, based on the assumption that the sales mix on the basis of
relative sales volume in units remains constant. Use the weightedaverage contribution margin approach. Enter Sales mix
based on units as a whole percentage and round Weightedaverage CM per unit to two decimal places.