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 – Liusson

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