Question

when a job is completed and all cost have been accumulated

WileyPLUS: My YPLUS Weygandt, Financial and Managerial, 3e, Custom WileyPLUS Course for University of Louisiana - Lafayette FINANCIAL and, Study & Practice Assignment Gradebook ORION > Open Assignment CALCULATOR MESSAGE HY INSTRUCTOR FULL SCREEN Practice Exercise 01 T RESOURCES Chapter 19 xercise 01 ure Ouestion Your answer is incorrect. Try again. ure Question Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution marginare as follows Unit Contribution Margin Sales Mix re Question 01 re Ouestion 03 Question oz Question 03 Lawnmowers 20 % Weed-trimmers Chainsaws Puestion 22 Yard Tools has fixed costs of $4,512,900. Compute the number of units of each product that Yard Tools must sell in order to break even under this product mix ults by Study Lawnmowers 6 units Weed-trimmers units Chainsaws 45000 units Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT ement Privacy Policy 1 R 2000-2020 John Wiley & Sons, Inc. All Rights Reserved. A DIV

Answer 1

To solve this, let's assume that the total number of all unit sold (lawnmowers, weed-trimmers and chainsaws) is x. Since the sales mix has to be in the ratio of 20% lawnmowers, 50% weed-trimmers and 30% chainsaws, we can say that the total units to be sold = 0.2x + 0.5x + 0.3x

To find the break-even number of units with the above sales mix, it must mean that total contribution from total units sold = total fixed costs

i.e.

[(0.2x units * $30/unit) + (0.5x * $23/unit) + (0.3x * $44/unit)] =	$4,512,900
(6x + 11.5x + 13.2x) =	$4,512,900
30.7x =	$4,512,900
x =	4,512,900 / 30.7
x , ie. total number of units sold at break-even =	147,000

Therefore the number of units of each product that Yard Tools must sell in order to break-even under this product mix is as follows:

Lawnmowers = 20% * 147,000 = 29,400

Weed-trimmers = 50% * 147,000 = 73,500

Chainsaws = 30% * 147,000 = 44,100