Exercise 20-6 Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin...

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Exercise 20-6 Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin ar

business accounting

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Answer 1

Answer #1

Break even point = Total fixed cost / contribution margin

Weighted average contribution = $(31*20%+25*50%+37*30%)

= $(6.2+12.5+11.1)

=$29.8

total fixed cost = $4350800

Break even point = $4350800/29.8

=146000 units

lawn movers = 146000*20% =29200 units

weed trimmers=146000*50%=73000 units

chainsaws =146000*30%=43800 units

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Answer 2

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Exercise 20-6 Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin...

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