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4. The sales mix of High and Dry Company is 6 units of Arid, 2 units of Blast, and 2 units of Cyclo. Sales prices for each pr
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4.

Composite break-even units 55,700
Break-even units - Arid 33,420
Break-even units - Blast 11,140
Break-even units - Cyclo 11,140

Calculations:

Sales price - Variable cost = Contribution margin
Arid $25 - $14 = $11
Blast $30 - $24 = $6
Cyclo $40 - $34 = $6
Contribution margin x % of sales mix = Sales mix
Arid $11 x 60% = $6.60
Blast $6 x 20% = $1.20
Cyclo $6 x 20% = $1.20
Total weighted contribution $9.00

Composite break-even units = Fixed assets ÷ Weighted contribution = $501,300/$9.00 = 55,700 units

Break-even units - Arid = 55,700 x 60% = 33,420 units

Break-even units - Blast = 55,700 x 20% = 11,140 units

Break-even units - Cyclo = 55,700 x 20% = 11,140 units

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