Markowis Corporation sells three different models of mosquit

Markowis Corporation sells three different models of mosquito “zapper.” Model A12 sells for $53 and has variable costs of $36. Model B22 sells for $102 and has variable costs of $66. Model C124 sells for $404 and has variable costs of $291. The sales mix of the three models is: A12, 55%; B22, 30%; and C124, 15%.

If the company has fixed costs of $215,180, how many units of each model must the company sell in order to break even?

Model
A12 \"Entry
B22 \"Entry
C124 \"Entry

Solution

Selling price = 53

Variable cost =36

Contribution = 17

Likewise for other 2 products also calculated as shown below

Markowis Corporation
Products A12 B22 C124
Selling price S 53 102 404
Variable cost V 36 66 291
Contribution 16 36 113
Production Percent 55 22 30
Total contribution 880 792 3390 5062
Fixed cost 37407.82 33667.04 144105.1363 215180
Ratio of fixed cost to total contrn for 100 units 42.50889
Hence for Break even required production is as follows:
Fixed cost/contrn 2337.989 935.1956 1275.266693 4548.451
Contrn 37407.82 33667.04 144105.1363 215180
Profit 0
Markowis Corporation sells three different models of mosquito “zapper.” Model A12 sells for $53 and has variable costs of $36. Model B22 sells for $102 and has

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