Waterways have a sales mix of sprinklers, valves, and controllers as follows:
· Annual expected sales:
Sale of sprinklers 460,000 units at $26.50
Sale of valves 1,480,000 units at $11.20
Sale of controllers 60,000 units at $42.50
· Variable manufacturing cost per unit:
Sprinklers $13.75
Valves $ 7.95
Controllers $29.75
· Fixed Manufacturing overhead cost (total) $760,000
· Variable selling and administrative expenses per unit:
Sprinklers $1.30
Valves $0.50
Controllers $3.41
· Fixed selling and administrative expenses (total) $1,600,000
Instructions
(a) Determine the sales mix based on unit sales for each product.
(b) Using the annual expected sales for these products, determine the weighted-average unit contribution margin for these three products (Round to two decimal places.)
Assuming the sales mix remains the same, what is the break-even point in units for these products