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Rhino's Landscaping sells a quality brand of hoes, shovels, and rakes in a sales mix of 2:4:2 (25%, 50%, 25%).  The company's fixed costs are $61,000. Product data include the following:

Hoes Unit sales price $12.................Unit Variable costs $8

Shovels unit sales price $15.............unit variable costs $7

Rakes unit sales price $16................unit variable costs $8

Required

a.) compute the overall contribution margin per unit for the company.

b.)Determine overall breakeven point for the company (total units)

c.)Calculate the breakeven point in units for each product:

Hoes

Shovels

Rakes

d.)Determine the overall breakeven point in total sales dollars for the company

 

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9800775

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