Snow Cap Springs produces and sells water filtration systems for homeowners. Information regarding its three models is shown below.
Basic |
Basic Plus |
Premium |
Total |
Units sold |
640 |
200 |
160 |
1,000 |
Selling price |
$245 |
$395 |
$797 |
Variable cost |
$196 |
$288 |
$412 |
The company's total fixed costs to produce the filtration systems are $148,668.
Determine the sales mix as a function of units sold for the three products. (Round answers to 0 decimal places, e.g. 12.)
Determine the weighted-average unit contribution margin. (Round answer to 2 decimal places, e.g. 10.25.)
Determine the total number of units that the company must produce to break even.
Determine the number of units of each model that the company must produce to break even.