Smith company can produce two types of carpet cleaners


Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows:

Brighter Cleaner

  Sales volume in units 440     660    

  Unit sales price $825 $1,100    

  Unit variable cost 330     495    

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 $240,000.

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.)

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Financial Accounting: Smith company can produce two types of carpet cleaners
Reference No:- TGS01696409

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