Question

Question 5 Pure Water Products produces two types of water filters. One attaches to the faucet and cleans all water that passes through the faucet. The other is a pitcher-filter that only purifies water meant for drinking Revenue and cost information for each product appears below: • the unit that attaches to the faucet is sold for $70 and has variable costs of $30 the pitcher-filter sells for $80 and has variable costs of $45 fixed costs total $424,000 • Pure Water sells 4 faucet models for every 3 pitcher-filters sold Calculate the number of units of the pitcher-filters that must be sold in order for Pure Water Products to break-even 4,800

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Answer 1

Your answer is correct

	Faucet	Pitcher	Total
Sales	70.00	80.00
Variable cost	30.00	45.00
Contribution	40.00	35.00
weight	4.00	3.00
Weighted contribution Margin	160.00	105.00	37.86
Fixed cost			424,000.00
Combined Break even			11,200.00
Break even	6,400.00	4,800.00