Answer:
Lawnmowers= 30,000
Weed-trimmers= 75,000
Chainsaws= 45,000
Explanation:
<u>First, we need to calculate the weighted average contribution margin:</u>
Weighted average contribution margin= sales proportion*unitary contribution margin
Weighted average contribution margin= (0.2*30) + (0.5*20) + (0.3*40)
Weighted average contribution margin= $28
<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)= 4,200,000 / 28
Break-even point (units)= 150,000
<u>Finally, the number of units to be sold for each product:</u>
Lawnmowers= 0.20*150,000= 30,000
Weed-trimmers= 0.5*150,000= 75,000
Chainsaws= 0.3*150,000= 45,000
