The Parsons Company Makes and Sells Two Models of Blenders,as

question 101

Essay

The Parsons Company makes and sells two models of blenders,as follows:
$$\begin{array} { l c r } & \text { Smoothie Pro } & \text { Blend master } \\\text { Sales price per unit } & \$ 50 & \$ 8 0 \\\text { Variable cost per unit } & 25 & 45 \\\text { Contribution margin per unit } & \$ 2 5& \$3 5 \end{array}$$ The Parsons Company expects to incur annual fixed costs of $151,250.The relative sales mix of the products is three units of Smoothie Pro for every one unit of Blendmaster.
Required:
1)Determine the total number of blenders (Smoothie Pro and Blendmaster combined)that Parsons must sell to break even.
2)What is the number of units of Smoothie Pro and of Blendmaster that Parsons would expect to sell at the break-even point?

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Definitions:

Time To Answer

The duration taken by a respondent or system to respond to a query or request.

Continuous Random Variable

A variable that can take on an infinite number of values within a given range, often associated with measurements.

Speed

A scalar measure of the rate at which an object covers distance, typically expressed in units of distance over time.

Radar Equipment

Technology that uses radio waves to determine the range, angle, or velocity of objects, widely used in navigation and meteorology.