Paddleboard Incorporated builds three products: River,Lake,and Ocean.Information for these three products is shown below:

Total annual fixed costs are $765,000.Assume the sales mix remains the same at all levels of sales.
(1)
a.How many products in total must be sold to break even?
a.How many products in total must be sold to earn an annual profit of $1,275,000?
b.How many units of each product must be sold to break even?
(2)
b.How many units of each product must be sold to earn an annual profit of $1,275,000?

Question

Paddleboard Incorporated builds three products: River,Lake,and Ocean.Information for these three products is shown below:
  
Total annual fixed costs are $765,000.Assume the sales mix remains the same at all levels of sales.
(1) 
a.How many products in total must be sold to break even?
a.How many products in total must be sold to earn an annual profit of $1,275,000?
b.How many units of each product must be sold to break even?
(2)
b.How many units of each product must be sold to earn an annual profit of $1,275,000?

Quizplus · Accepted Answer

The Answer of Paddleboard Incorporated builds three products: River,Lake,and Ocean.Information for these three products is shown below:
  
Total annual fixed costs are $765,000.Assume the sales mix remains the same at all levels of sales.
(1) 
a.How many products in total must be sold to break even?
a.How many products in total must be sold to earn an annual profit of $1,275,000?
b.How many units of each product must be sold to break even?
(2)
b.How many units of each product must be sold to earn an annual profit of $1,275,000?

Paddleboard Incorporated Builds Three Products: River,Lake,and Ocean