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

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Answer 1

Answer #1

Contribution margin at sales mix:

= (2 X $30) + (5 X $23) + (3 X $44)

= $307

Breakeven units:

= $4,512,900 X 10 / $307

= 147,000 units

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

Weed trimmers = 147,000 X 50% = 73,500

Chainsaw = 147,000 X 30% = 44,100

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Answer 2

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