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Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows.

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Ans. Contribution margin per unit (a) Product mix (b) Weighted Contribution margin (a*b)
Lawnmowers $31.00 20% $6.20
Weed - trimmers $21.00 50% $10.50
Chainsaws $37.00 30% $11.10
Weighted Contribution margin $27.80
Break even point in units (Total company)   =   Total fixed cost/ Weighted contribution margin
$4,031,000 / $27.80
$145,000
Break even point of particular product   =    Break even point in units for Total company * Product mix
Lawnmowers 145,000 * 20%
29,000 units
Weed - trimmers 145,000 * 50%
72,500 units
Chainsaws 145,000 * 30%
43,500 units
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