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In: Accounting

Snow Cap Springs produces and sells water filtration systems for homeowners. Information regarding its three models...

Snow Cap Springs produces and sells water filtration systems for homeowners. Information regarding its three models is shown below.

Basic

Basic Plus

Premium

Total
Units sold 580 220 200 1,000
Selling price $251 $404 $800
Variable cost $200 $283 $417


The company’s total fixed costs to produce the filtration systems are $185,920.

Determine the sales mix as a function of units sold for the three products.

Basic

Basic Plus

Premium
The sales mix as a function of units sold

  %

  %

  %

eTextbook and Media

  

  

Determine the weighted-average unit contribution margin. (Round answer to 2 decimal places, e.g. 10.25.)

Weighted-average unit contribution margin

$Type your answer here

eTextbook and Media

  

  

Determine the total number of units that the company must produce to break even.

Break-even point in units

Type your answer here

 units

eTextbook and Media

  

  

Determine the number of units of each model that the company must produce to break even.

Basic units
Basic Plus units
Premium units

Solutions

Expert Solution

ekkarill92 answered 3 years ago
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