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EverGreen Company sells two types of air filters, Standard and Deluxe. The Standard filter has a...

EverGreen Company sells two types of air filters, Standard and Deluxe. The Standard filter has a contribution margin of $10 per unit, while the Deluxe has a contribution margin of $20 per unit. EverGreen sells 6 Standard filters to every 1 Deluxe filter. If fixed costs total $148,000, how many Standard and Deluxe filters must be sold to breakeven?

Standard?

Deluxe?

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Answer #1
Fixed costs 148000
Divide by Composite Contribution margin per unit 80 =(6*10)+(1*20)
Composite units to break even 1850
Standard units to break even 11100 =1850*6
Deluxe units to break even 1850 =1850*1
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