Question: Snow Cap Springs produces and sells water filtration systems for homeowners. Information regardin… (1 bookmark) 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 600 220 180 1,000 Selling price $246 $404 $799 Variable cost $196 $287 $420 The company’s total fixed costs to produce the filtration systems are $173,544. Snow Cap Springs produces and sells water filtrati Snow Cap Springs produces and sells water filtrati Determine the sales mix as a function of units sold for the three products. (Round answers to 0 decimal places, e.g. 12.) Basic Basic Plus Premium The sales mix as a function of units sold % % % Snow Cap Springs produces and sells water filtrati Snow Cap Springs produces and sells water filtrati Determine the weighted-average unit contribution margin. (Round answer to 2 decimal places, e.g. 10.25.) Weighted-average unit contribution margin $ Snow Cap Springs produces and sells water filtrati Snow Cap Springs produces and sells water filtrati Determine the total number of units that the company must produce to break even. Break-even point in units units Snow Cap Springs produces and sells water filtrati Snow Cap Springs produces and sells water filtrati Determine the number of units of each model that the company must produce to break even. Basic units Basic Plus units Premium units

    1)Basic =600/1000 = .6 or 60%

    Basic plus = 220 /1000 = .22 or 22%

    premium = 180/1000 = .18 or 18%

    2)

    BasicBasic pluspremium
    contribution246-196 = 50404-287 = 117 799-420 = 379
    weighted middle contribution (50* .60) +(117* .22)+(379 *.18) 30+ 25.74+ 68.22 = $ 123.96 per unit

    3)BEP (units ) =Fixed require /Weighted middle contribution

                          = 173544 / 123.96

                          = 1400 units

    4)Basic = 1400*.60 = 840

    Basic plus = 1400*.22 = 308

    premium = 1400*.18 = 252 units