Don Waller and Company sells canisters of three mosquito-repellant products:
Citronella, DEET, and Mean Green.
The company has annual fixed costs of $260,000. Last year, the company sold 5,000 canisters of its repellant in the ratio of 2:4:4. Wallers accounting department has complied the following data related to the three mosquito repellants:
Citronella DEET Mean Green
Price per canister $11.00 $15.00 $17.00
Variable costs per canister 6.00 12.00 16.00
A. Calculate the total number of canisters that must be sold for the company to break even.
B. Calculate the number of canisters of Citronella, DEET, and Mean Green that must be sold to break even.
C. How might Don Waller and Company reduce its break-even point?