Question

Sheridan, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $19 and are sold for $34. Glass pitchers cost $28 and are sold for $49. All other costs are fixed at $3,429,972 per year. Current sales plans call for 48,860 plastic pitchers and 146,580 glass pitchers to be sold in the coming year. (a) Your answer is correct. 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 Glass pitchers 43974 131922 e Textbook and Media Assistance Used Attempts: 1 of 3 used (b) Sheridan, Inc., has just received a sales catalog from a new supplier that is offering plastic pitchers for $17. What would be the new contribution margin per unit if managers switched to the new supplier? Plastic pitchers Glass pitchers Contribution margin per unit $ 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 eTextbook and Media Assistance Used

Answer 1

sheridan and sells CbZ plastic pitches Fi allass pitcher $ 21 contribution mongin PD contnbution margin eu sales - variable cost Plastic 34 - 17 - 16 17 Glass & $ 49 - $28 - 621 > sales mix Ratio plastic 48860 : : Glass 146, 580 plastic pitches 42875 Gilass pitches 128, 626 - Baeakeven in units SUPPose sales "X" unit - At Breakeven point profit = $0. I sales - variable EXP - fixed cost = so contribution morgin - fixed cost go 17x + (21 x] 3 - $3429972 -0. 17x + 630 = $ 3,429, 972 80x = $ 3,429 972 a = [428751 31-128, 6241