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Break-Even Units & Weighted Averages

Use any data to complete the following problem:
Douglas Corporation produces and sells two models of vacuum cleaners, Standard and Deluxe. Company records show the following data relating to these two products:

Standard Deluxe:
Selling price per unit
Variable production costs per unit
Variable selling and admin. expense per unit
Expected monthly sales in units

The company's total monthly fixed expense is $XXX.

a. The break-even in sales dollars for the expected sales mix is closest to:

b . If the expected monthly sales in units were divided equally between the two models (XXX Standard and YYY Deluxe), the break-even level of sales would be:

Solution Preview

Dear student,
Solution to your posted problem is developed on the basis of assumed data of the month .It is provided in a separate excel file ...

Solution Summary

Solution provides an Excel spreadsheet which budgets net income, calculates the weighted average selling price & weighted average variable cost and finds the break even units for Douglas Corporation.

$2.19