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Question: Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows.


Sales Mix

Unit Contribution
Margin

Lawnmowers 20 % $30
Weed-trimmers 50 % $20
Chainsaws 30 % $40

Yard Tools has fixed costs of $4,200,000.

Compute the number of units of each product that Yard Tools must sell in order to break even under this product mix. (Use Weighted-Average Contribution Margin Ratio rounded to 2 decimal places e.g. 0.25 and round final answers to 0 decimal places, e.g. 2,510.)

Lawnmowers units
Weed-trimmers units
Chainsaws units

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M93076357

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