Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix

Question

Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows.

Sales Mix

Unit Contribution
Margin

Yard Tools has fixed costs of $4,920,000.

Compute the number of units of each product that Yard Tools must sell in order to break even under this product mix. (Use Weighted-Average Contribution Margin Ratio rounded to 2 decimal places e.g. 0.25 and round final answers to 0 decimal places, e.g. 2,510.)

Sales Mix

Unit Contribution
Margin

Lawnmowers 20 % $34 Weed-trimmers 50 % $25 Chainsaws 30 % $45 Exercise 6-6 Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows Unit Contribution Margin Lawnmowers Weed-trimmers Chainsaws Sales Mix 20 % 50 % 30 % $34 $25 $45 Yard Tools has fixed costs of $4,920,000 Compute the number of units of each product that Yard Tools must sell in order to break even under this product mix. (Use Weighted-Average Contribution Margin Ratio rounded to 2 decimal places e.g. 0.25 and round final answers to 0 decimal places, e.g. 2,510.) Lawnmowers Weed-trimmers Chainsaws units units units LINK TO TEXT Question Attempts: 0 of 5 used SAVE FOR LATER SUBMIT ANSWER

Explanation / Answer

Sales Units Sales MixPercentage Unit Contribution Margin Weighted-AverageContribution Margin Lawnmowers 20% 34 6.8 Weed-trimmers 50% 25 12.5 Chainsaws 30% 45 13.5 32.8 Yard Tools has fixed costs of $4,920,000 Total break-even =4920000/32.8 150000 Units Sales Units Sales MixPercentage Break even Sales Units Needed Per Product %*150000 Lawnmowers 20% 30000 Weed-trimmers 50% 75000 Chainsaws 30% 45000 150000 Sales Units Break even Sales Units Needed Per Product %*150000 Lawnmowers 30000 Weed-trimmers 75000 Chainsaws 45000 150000

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