Smith Company can produce two types of carpet cleaners Brigh

Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows Brighter Cleaner 960 $675$1,600 720 640 Sales volume in units Unit sales price Unit variable cost 270 The number of machine-hours to produce one unit of Brighter is 1 while the number of machine-hours for each unit of Cleaner is 2. Total fixed costs for the manufacture of both products are $260,000 Required 1.Using a spreadsheet, determine the breakeven point in total units for Smith Company, assuming that the sales mix (based on physical volume) remains constant. (Round \"Sales mix (based on units)\" and \"Weighted average contribution margin/unit\" to 2 decimal places. Round your final answer for \"Total units to breakeven\" up to the nearest whole unit.) Brighter Cleaner 405 $ 0.40 880 Contribution margin/unit Sales mix (based on units) Wtd.-avg. cm per unit Total fixed costs to be recovered ÷ Weighted-average cm/unit Total units to breakeven 0.60 1.00 2. At this breakeven level, how many of each product are envisioned? Due to rounding, the total breakeven units for Requirement 2 may differ slightly than in Requirement 1. (Round \"Sales mix\" to 2 decimal places. Round your final answers for \"Breakdown\" up to the nearest whole unit.) Brighter Cleaner Sales mix Breakdown

Solution

Answer 1. Brighter Cleaner Contribution margin / unit       405.00      880.00 Sales Mix (based on units) 40% 60% Wtd. Avg. cm per unit       162.00      528.00            690.00 Total Fixed costs to be recovered    260,000.00 / Weighted average cm/unit            690.00 Total units to breakeven                  377 Answer 2. Brighter Cleaner Total Sales Mix 40% 60% 100% Breakdown             151            226                  377