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Pure Water Products produces two types of water filters. One attaches to the faucet and cleans all water that passes through the faucet. The other is a pitcher-filter that only purifies water meant for drinking. Revenue and cost information for each product appears below:

?      the unit that attaches to the faucet is sold for $80 and has variable costs of $20

?     the pitcher-filter sells for $90 and has variable costs of $25

?     fixed costs total $775,000

?     Pure Water sells 3 faucet models for every 2 pitcher-filters sold

Calculate the number of units of the faucet-model that must be sold in order for Pure Water Products to break-even.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M91975496

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