Ryan's Landscaping Sells a Quality Brand of Hoes,shovels,and Rakes in a Sales

question 58

Essay

Ryan's Landscaping sells a quality brand of hoes,shovels,and rakes in a sales mix of 2:4:2.The company's fixed costs are $61,600.Product data include the following:
$\begin{array}{lrr}&\text {Unit Sales }&\text { Unit Variable }\\&\text {Price}&\text {Costs}\\ \text { Hoes } & \$ 12 & \$ 8 \\\text { Shovels } & 15 & 7 \\\text { Rakes } & 16 & 8\end{array}$
a. Compute the weighted-average contribution margin.
b. Determine the weighted-average breakeven point.
c. Calculate the breakeven point for each product.
d. Determine the breakeven point in sales dollars.

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