Title: Cost Accounting- Mixed Bag
Problem - AquaPure produces two modules of water filters. Module 1 attaches to the faucet and cleans all water that passes through the faucet. This module is sold for $80 and has variable costs of $20. Model 2 is a pitcher-cum filter that only purifies water meant for drinking. This model is sold for $90 and has variable costs of $25. AquaPure sells two faucet models for every three pitchers sold. Fixed costs equal $945,000.
Tasks: What is the break-even point in unit sales and dollars for each type of filter at the current sales mix?