Answer:
Crown Co.
The breakeven point in total units is:
711 units
Explanation:
a) Data and Calculations:
Enlightner Foglighter Total
Sales volume in units 500 400 900
Unit sales price $ 300 $ 400
Sales value $150,000 $160,000 $310,000
Unit variable cost 200 240
Variable costs $100,000 $96,000 $196,000
Unit contribution margin $ 100 $ 160
Total contribution $50,000 $64,000 $114,000
Machine hour 1 1
Weighted contribution margin per unit $126.67 ($114,000/900)
Total fixed costs $90,000
Variable costs $196,000
Total costs = $286,000
Weighted contribution margin per unit:
Enlightner Foglighter Total
Unit contribution margin ($ 100 *5/9) ($ 160 * 4/9)
$55.56 $71.11 $126.67
Break-even point in total units = Fixed costs/Weighted contribution margin per unit
= $90,000/$126.67
= 710.5 units
