Question

Question 2 Cullumber, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $38 and are sold for $53. Glass pitchers cost $47 and are sold for $68. All other costs are fixed at $2,122,848 per year. Current sales plans call for 30,240 plastic pitchers and 90,720 glass pitchers to be sold in the coming year. (a) How many pitchers of each type must be sold to break even in the coming year? (Use contribution margin per unit to calculate breakeven units.) Plastic pitchers Glass pitchers Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT LINK TO VIDEO LINK TO VIDEO Attempts: 0 of 15 used SAVE FOR LATER SUBMIT ANSWER

Answer 1

	Units in one sales mix
	=90720/30240
	=3 glass pichers & 1 plastic pitchers
	Contribution Margin Per Unit = Sales price - variable cost per unit
	plastic pitchers
	= $53-38
	= $15 per unit
	Glass pitchers
	=$68-47
	=$21 per unit
	Contribution Margin Per Sales Mix = (1*$15)+(3*21)
	=15+63
	=$78
	Break-even point in sales mix
	Break-even Point In sales mix = Fixed Cost/ Contribution Margin Per sales mix
	= $2122848/78
	=27216 sales mix
	Therefore for break even
	Plastic Pichers to be sold = 27216*1=27216 pichers
	Glass Pichers to be sold =27216*3 =81648 pichers