Problem - MacFarlane Printer Machines (MPM) builds three computer printer models: Inkjet, Laser, and Color Laser. Information for these three products is as follows:
|
|
Inkjet
|
Laser
|
Color Laser
|
Total
|
|
Selling price per unit
|
$255
|
$420
|
$1,680
|
|
|
Variable cost per unit
|
$105
|
$158
|
$840
|
|
|
Expected unit sales (annual)
|
12,600
|
6,300
|
2,100
|
21,000
|
|
Sales mix
|
60%
|
30%
|
10%
|
100%
|
Total annual fixed costs are $5,250,000. Assume that the sales mix remains the same at all levels of sales.
Required -
How many printers in total must be sold to break even?
How many units of each printer must be sold to break even?
How many printers in total must be sold to earn an annual profit of $1,000,000?
How many units of each printer must be sold to earn an annual profit of $1,000,000?