# 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 1,200 420 380 2,000 selling price 246 395 795 variable cost 197 290 417 The company’s total fixed costs to produce the filtration systems are \$147,924. a) 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 % % % b) Determine the weighted-average unit contribution margin. (Round answer to 2 decimal places, e.g. 10.25.) weighted-average unit contribution margin \$ c) Determine the total number of units that the company must produce to break even. break-even point in units d) Determine the number of units of each model that the company must produce to break even. basic units basic plus units premium units

 Req 1: Basic Basic Plus Premium Total Units Sold 1200 420 380 2000 Units sold as % of Total 60% 21% 19% 100% Req 2: Basic Basic Plus Premium Total Selling Price per unit 246 395 795 Less: Variable absorb per unit 197 290 417 Contribution latitude per unit 49 105 378 Sales Mix 60% 21% 19% Weighted Contribution 29.4 22.05 71.82 123.27 Weighted Contribution latitude per unit: \$ 123.27 Req 3: Total Fixed absorb: \$ 147924 Weighted Middle Contribution per unit: \$ 123.27 per unit Break flush in units: Total Fixed absorb/ Weighted middle CM per unit \$147924 / 123.27 = 1200 units Req 4: Nnumber of Units of each model to be sold: Basic (1200*60%) 720 units Basic Plus (1200*21%) 252 units Premium (1200*19%) 228 units