Wildhorse, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company...

Wildhorse, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $35 and are sold for $50. Glass pitchers cost $44 and are sold for $65. All other costs are fixed at $3,095,820 per year. Current sales plans call for 44,100 plastic pitchers and 132,300 glass pitchers to be sold in the coming year.

Wildhorse, Inc., has just received a sales catalog from a new supplier that is offering plastic pitchers for $33. What would be the new contribution margin per unit if managers switched to the new supplier?

		Plastic pitchers		Glass pitchers
Contribution margin per unit		$		$

What would be the new breakeven point if managers switched to the new supplier? (Use contribution margin per unit to calculate breakeven units. Round answers to 0 decimal places, e.g. 25,000.)

		Plastic pitchers		Glass pitchers
Breakeven in Units

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Expert Solution

ekkarill92 answered 1 year ago

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