FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
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 |
||||
Sprinklers | $14.00 | |||
Valves | $8.00 | |||
Controllers | $30.00 | |||
Fixed manufacturing |
$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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