Rhino's Landscaping sells a quality brand of hoes, shovels, and rakes in a sales mix of 2:4:2 (25%, 50%, 25%). The company's fixed costs are $61,000. Product data include the following:
Hoes Unit sales price $12.................Unit Variable costs $8
Shovels unit sales price $15.............unit variable costs $7
Rakes unit sales price $16................unit variable costs $8
Required
a.) compute the overall contribution margin per unit for the company.
b.) Determine overall breakeven point for the company (total units)
c.) Calculate the breakeven point in units for each product:
Hoes
Shovels
Rakes
d.)Determine the overall breakeven point in total sales dollars for the company