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Given the stated sales mix, how many gadgets are sold at the

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The Breaker Company produces two products: widgets and gadgets. The following information is available:

Widgets Gadgets

Unit Selling Price $30 $20
Unit Variable Costs 24 10
Unit Contribution Margin 6 10
Sales Mix 60% 40%

Additional information: Fixed costs are $152,000.00

Given the stated sales mix, how many gadgets are sold at the break-even point?

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Solution Summary

Computations done two different ways, average margin and basket mix, in Excel.

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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