Snow cap Springs – sales mix -weighted average unit contribution margin
Snow cap Springs produces and sells water filtration systems for homeowners. Information regarding its three models is shown below:
Basic Basic Plus Premium Total
Units sold 868 294 238 1,400
Selling price $251 $396 $800
Variable cost $190 $285 $416
The company accounts total fixed costs to produce the filtration systems are $139,051.
a) Determine the sales mix as a function of units sold for three products.
b) Determine the weighted average unit contribution margin.
c) Determine the total number of units that the company must produce to breakeven.
d) Determine the number of units of each model that the company must produce to breakeven.
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