Question

Do It! Review 19-2 Snow Cap Springs produces and sells water filtration systems for homeowners. Information regarding its three models is shown below Basic 627 $254 $198 Basic Plus Premium Total Units sold Selling price Variable cost 242 $396 $290 231 1,100 $798 $418 The company's total fixed costs to produce the filtration systems are $148,544 Determine the sales mix as a function of units sold for the three products. (Round answers to 0 decimal places, e.g. 12.) Basic Basic Plus Premium The sales mix as a function of units sold LINK TO TEXT Determine the weighted-average unit contribution margin. (Round answer to 2 decimal places, e.g. 10.25.) Weighted-average unit contribution margin c

Answer 1

Computation of Sales as function of units Sold for three product
Particulars	Basic	Basic Plus	Premium	Total
Units Sold	627	242	231	1100
Selling Price	$254.00	$396.00	$798.00
Less: Variable Cost	$198.00	$290.00	$418.00
Contribution	$56.00	$106.00	$380.00
Total Contribution	$35,112.00	$25,652.00	$87,780.00	$148,544.00
Sales Mix %	24%	17%	59%
Computation of Weighted Average Contribution per Unit
Total Contribution		148544
Unit Sold		2000
Weighted Average Contribution		74.272
(148544/2000)
					Computation of Breakeven sales
Fixed Cost		$148,544.00
Weighted Average Contribution		74.272
Break even Sales ( in Units)		2000
(148544/2000)
Computation of Sales Mis for models to achieve Brakeven
Particular		Sales Mix%	Unit
Basic		24%	480
Basic Plus		17%	340
Premium		59%	1180
Total			2000