Question - Tress Enterprises manufactures shampoo and conditioner. Last year, Tress sold 120,000 bottles of product. Unit sales of conditioner amounted to 60% of the number of units of shampoo. This trend is expected to continue. The selling price for both products is $12.00; however, the variable cost of a unit of shampoo is $6.00, while the variable cost of a unit of conditioner is $8.00. Fixed costs are expected to be $420,000.
a. Compute the number of each product sold.
b. Compute the weighted-average contribution margin per unit.
c. Compute the overall break-even point in units.
d. Compute the unit sales of shampoo and conditioner at the break-even point.
e. Compute the dollar sales of shampoo and conditioner at the break-even point.