In: Accounting
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 | 912 | 368 | 320 | 1,600 | ||||
Selling price | $248 | $404 | $801 | |||||
Variable cost | $194 | $287 | $411 |
The company’s total fixed costs to produce the filtration systems
are $203,535.
Determine:
The sales mix as a function of units sold for the three products (round answers to 0 decimal places)
The weighted-average unit contribution margin (round answers to 2 decimal places)
The total number of units that the company must produce to break even
The number of units of each model that the company must produce to break even