FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Waterways has a sales mix of sprinklers, valves, and controllers as follows.

Annual expected sales:    
Sale of sprinklers   485,415 units at $26.00
Sale of valves   1,561,770 units at $11.00
Sale of controllers   63,315 units at $42.00

 

Variable manufacturing cost per unit:
Sprinklers   $14.00    
Valves   $8.00    
Controllers   $30.00    
Fixed manufacturing overhead cost (total)       $746,000

 

Variable selling and administrative expenses per unit:
Sprinklers   $1.00    
Valves   $1.00    
Controllers   $3.00    
Fixed selling and administrative expenses (total)       $1,663,212

 

Determine the sales mix based on unit sales for each product.

    Sprinklers   Valves   Controllers
Sales mix  

%

 

%

 

%

 

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  

$          

 

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  

 

             units
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