Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301....
Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows:
| Product | Sales Price per Unit |
Variable Cost per Unit |
| Model 101 | $270 | $190 |
| Model 201 | 345 | 215 |
| Model 301 | 405 | 240 |
The current product mix is 4:3:2. The three models share total fixed costs of $520,000.
A. Calculate the sales price per composite unit.
Sales price $ per composite unit
B. What is the contribution margin per composite unit?
Contribution margin $ per composite unit
C. Calculate Manatoah’s break-even point in both dollars and units.
Break-even point in dollars $
Break-even point in units units
D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0".
| Income Statement | |
| Sales | |
| Model 101 | $ |
| Model 201 | |
| Model 301 | |
| Total Sales | $ |
| Variable Costs | |
| Model 101 | $ |
| Model 201 | |
| Model 301 | |
| Total Variable Costs | $ |
| Contribution Margin | $ |
| Fixed Costs | |
| Net Income | $ |
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Manatoah Manufacturing produces 3 models of window air
conditioners: model 101, model 201, and model 301....
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