Answer:
Results are below.
Explanation:
Sales Mix Unit Contribution Margin
Lawnmowers 20% $30
Weed-trimmers 50% $21
Chainsaws 30% $39
Fixed cosst= $4,342,800
<u>First, we need to calculate the weighted average contribution margin:</u>
<u></u>
weighted average contribution margin= (0.2*30) + (0.5*21) + (0.3*39)
weighted average contribution margin= $28.2
<u>Now, the break-even point in units for the whole company:</u>
Break-even point (units)= Total fixed costs / Weighted average contribution margin
Break-even point (units)= 4,342,800 / 28.2
Break-even point (units)= 154,000
<u>Now, for each product:</u>
Lawnmowers= 0.20*154,000= 30,800
Weed-trimmers= 0.50*154,000= 77,000
Chainsaws= 0.30*154,000= 46,200
