The HandyTool Manufacturing Company produces the following three products: $$\begin{array} { l r r r }
& \text { Hammers } & \text { Screwdrivers } & \text { Saws } \
\text { Selling price per unit } & \$ 40 & \$ 16 & \$ 50 \
\text { Variable costs per unit } & 28 & 12 & 30 \
\text { Contribution per unit } & \$ 12 & \$ 4 & \$ 20
\end{array}$$ Fixed costs are $76,000 per year.
Of all units sold,50% are hammers,30% are screwdrivers,and 20% are saws.
Required: Calculate the following values: A. $\quad$ Break-even point in total units
B. $\quad$Number of hammers that will be sold at break-even
C. $\quad$Total sales in units to obtain a before-tax profit of $\$ 19,000$

Question

The HandyTool Manufacturing Company produces the following three products: $$\begin{array} { l r r r } 
& \text { Hammers } & \text { Screwdrivers } & \text { Saws } \
\text { Selling price per unit } & \$ 40 & \$ 16 & \$ 50 \
\text { Variable costs per unit } & 28 & 12 & 30 \
\text { Contribution per unit } & \$ 12 & \$ 4 & \$ 20
\end{array}$$ Fixed costs are $76,000 per year.
Of all units sold,50% are hammers,30% are screwdrivers,and 20% are saws.
Required: Calculate the following values: A. $\quad$ Break-even point in total units
B. $\quad$Number of hammers that will be sold at break-even
C. $\quad$Total sales in units to obtain a before-tax profit of $\$ 19,000$

Quizplus · Accepted Answer

The Answer of The HandyTool Manufacturing Company produces the following three products: $$\begin{array} { l r r r } 
& \text { Hammers } & \text { Screwdrivers } & \text { Saws } \
\text { Selling price per unit } & \$ 40 & \$ 16 & \$ 50 \
\text { Variable costs per unit } & 28 & 12 & 30 \
\text { Contribution per unit } & \$ 12 & \$ 4 & \$ 20
\end{array}$$ Fixed costs are $76,000 per year.
Of all units sold,50% are hammers,30% are screwdrivers,and 20% are saws.
Required: Calculate the following values: A. $\quad$ Break-even point in total units
B. $\quad$Number of hammers that will be sold at break-even
C. $\quad$Total sales in units to obtain a before-tax profit of $\$ 19,000$

The HandyTool Manufacturing Company Produces the Following Three Products Fixed Costs Are $76,000 Per Year