Yard tools manufactures lawnmowers, weed-trimmers, and chainsaws. its sales mix and unit contribution margin are as follows.
sales mix
unit contribution
margin
lawnmowers 20 % $30
weed-trimmers 50 % $20
chainsaws 30 % $40
yard tools has fixed costs of $4,200,000.
compute the number of units of each product that yard tools must sell in order to break even under this product mix.

45,000 Chainsaws

75,000 Weed-trimmers

30,000 Lawnmowers

Explanation:

Contribution Margin Mix

We are going to multiply the contribution margin of the product, by their sales proportion. The we add the mix contribution of each product to get the contribution margin for the mix.

Lawnmowers 20 % $30 = 6

Weed-trimmers 50 % $20 = 10

Chainsaws 30 % $40 = 12

Total Mix Contribution 28

Next we calculate the BEP in units as usual

4,200,000/ 28 = 150,000 Mix units

Now we multiply the mix units by each product weight to get the sales for each product.

150,000 x 20% = 30,000 Lawnmowers

150,000 x 50% = 75,000 Weed-trimmers

150,000 x 30% = 45,000 Chainsaws  

years agooo ahaha. but honestly they need to update ! : )

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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