Question

Question 7 NoFly Corporation sells three different models of a mosquito "zapper." Model A12 sells for $51 and has variable costs of $42. Model B22 sells for $109 and has variable costs of $74. Model C124 sells for $413 and has variable costs of $308. The sales mix of the three models is A12, 60%; B22, 27%; and C124 , 13%. If the company has fixed costs of $195,795, how many units of each model must the company sell in order to break even? (Round Per unit values to 2 decimal palces, e.g. 15..25 and final answers to 0 decimal places, e.g. 5,275.) Model A12 B22 C124 Total break-even units Click if vou would like to Show Work for this question: Open Show Work

Answer 1

Weighted average contribution margin ratio

= (51-42)*60% + (109-74)*27% + (413-308)*13%

= 28.50

Total breakeven = 195,795/28.5 = 6870

A-12 = 6870*60% = 4122

B22 = 6870*27% = 1854.90

C124 = 6870*13% = 893.1

Total break even = 6870