WileyPLUS Brief Exercise 6 14 Prese Secure httpsedugenw

WileyPLUS Brief Exercise 6 14 Prese × . ? ? Secure | https://edugen.wileyplus.com/edugen/lti/main.uni Assignment > Open Assignment CALCULATOR PRINTER VERSION RACK NFXT ASSIGNMENT RESOURCES Exercise 19-6 CH 19 HW Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows. Brief Exeraise 19-2 Unit Contribution Margin Lawnmowers Weed-trimmers Chainsaws Sales Mix 20% 50 % 30 % Brief Fxercise 19-6 Brief Exercise 19-1 520 S36 Yard Tools has fixed costs of $3,915,000 Compute the number of units of each product that Yard Tools must sell In order to break even under this product mix. (Use the Weighted-Average Unlt Contribution Margin Ratio rounded to 2 decimal places e.g. 0.25 and round final answers to o decimal places, e.g. 2,510.) 19-1 Lawnmowers Weed-trimmers Chainsaws units units units Brief Fxercise 19-14 Click if you would like to Show Work for this question: Open Show Work Objective LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor y & SnsInG. All Rights Reserved, A Division of Version 4.24.6.2 4:07 PM 6/11/2018 2

Solution

Weighted average contribution margin per unit = (31*20%+20*50%+36*30%) = 27 per unit

Break even units = 3915000/27 = 145000 units

Lawnmowers = 145000*20% = 29000 units

Weed trimmers = 145000*50% = 72500 units

Chainsaws = 145000*30% = 43500 units