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estion 3 35°lo in the ning 15% in the [10 marks] Beetle Manufacturing Company produces the following three products: The Beet
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Answer #1

Answer- A)- Break-even pints in total units=6786 units.

Explanation- Break-even pints in total units= Fixed costs/ Weighted average contribution margin ratio

= R76000/R11.2 per unit

= 6786 units

Where- Weighted average contribution margin ratio =Contribution margin rtaio* Sales mix percentage

= (R12 per unit*50%)+(R4 per unit*30%)+(R20 per unit*20%)

= R6+R1.2+R4

= R11.2 per unit

B)- Number of hammers that will be sold at break even = 6786 units*50%

= 3393 units

C)- Total sales in units to obtain a target income of R19000 = (Fixed costs+ Target income)/ Weighted average contribution margin ratio

= (R76000+R19000)/R11.2 per unit

= 8482 units

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