Question

Sandhill, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $40 and are sold for $55. Glass pitchers cost $49 and are sold for $70. All other costs are fixed at $1,906,632 per year. Current sales plans call for 27,160 plastic pitchers and 81,480 glass pitchers to be sold in the coming year. Please show all work (Scroll left and right to see problem

How many pitchers of each type must be sold to break even in the coming year? (Use contribution margin per unit to calculate breakeven units.)

Plastic pitchers		Enter a number of plastic pitchersEnter a number of plastic pitchersEnter a number of plastic pitchers
Glass pitchers		enter a number of Glass pitchersenter a number of Glass pitchersenter a number of Glass pitchers

  

  

Sandhill, Inc., has just received a sales catalog from a new supplier that is offering plastic pitchers for $38. What would be the new contribution margin per unit if managers switched to the new supplier?

		Plastic pitchers		Glass pitchers
Contribution margin per unit		$Enter a dollar amount Enter a dollar amountEnter a dollar amount		$Enter a dollar amount Enter a dollar amountEnter a dollar amount

What would be the new breakeven point if managers switched to the new supplier? (Use contribution margin per unit to calculate breakeven units. Round answers to 0 decimal places, e.g. 25,000.)

		Plastic pitchers		Glass pitchers
Breakeven in Units		Enter breakeven in Units rounded to 0 decimal placesEnter breakeven in Units rounded to 0 decimal placesEnter breakeven in Units rounded to 0 decimal places		Enter breakeven in Units rounded to 0 decimal placesEnter breakeven in Units rounded to 0 decimal placesEnter breakeven in Units rounded to 0 decimal places

Answer 1

Answer 1. Page No ① © plastic pitchers weighted average contribution per unit = sales mir fX contribution margin per opit 27160 = elavateo 2007 X 15 X 100 - 108640 54. X 15 = $3,45 Glass Pitch eres weighted average contibutie - 31460 U20 X 100 X (70 -47) 271607 81480 81480 x100x2 E108640 V € 75% X 21 : = $ 15175 average contribution per unit -- 3:45+15675 = $19.50 Total weighted

Page. No @ Total fixed coof = $ 1906,632 1 Total breaks even units = 1906,632 19.50 = 94476 Plastic pitcher break even enila = 97476x05%. = 94444 1 Plastic Pitcher break even units – 24444 Glass pitcher break even units - 94446 *75*% 73332 i Glass Pitcher breate even units = 13332 @ plastic Pitchers. contribution margin per vpil - sales poice furit 1 variable corsk funik o 55 - 38 = $17 plastic. Pitcher's contribution margin per unit = $14 Glass Pichens contribution margine per unit = 40-49 - $ 21

Page. No @ Glass Pitchens Contribution margin pen onit = $Q11 Plastic pitchers weighted average contribution peri onit 27160 129160 + 81480 *:00:* ( 55-38) = 25% x 17 = $4125 27160 +81480 Glass pitchers werighted average contribution per unit f_81480 X 10072 ( 7041) - (20160 4 Bruto * 75% X 21 = $15:15 weighted average contribution per ooit - 4.25 + 15175 Tolal fixed cook a $ 1906,632 1906,632 Total break even units = = 95332 + 20

Page No 9 Plastic Pitcher break even unito - 95332 x 25%. 3833 1. Plastic Pitcher break even units - 23833 Glass Pitcher break even units = 95332 x 75%. = 71499 ... Glass Pitcher break even cenito = 41499