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