Assume the Midwest Furniture Company sells two kinds of picnic tables, pine and redwood. At a 3:1 unit sales mix in which Midwest sells three pine tables for every redwood table, the following revenue and cost information is available.
Fixed costs per month: $18,150
Assuming a 3:1 sales mix, calculate Midwest Furniture's current monthly average unit contribution margin, break-even sales volume, and number of units of Pine and Redwood tables at break-even point.

Question

Assume the Midwest Furniture Company sells two kinds of picnic tables, pine and redwood. At a 3:1 unit sales mix in which Midwest sells three pine tables for every redwood table, the following revenue and cost information is available. 
  Fixed costs per month: $18,150
Assuming a 3:1 sales mix, calculate Midwest Furniture's current monthly average unit contribution margin, break-even sales volume, and number of units of Pine and Redwood tables at break-even point.

Quizplus · Accepted Answer

The Answer of Assume the Midwest Furniture Company sells two kinds of picnic tables, pine and redwood. At a 3:1 unit sales mix in which Midwest sells three pine tables for every redwood table, the following revenue and cost information is available. 
  Fixed costs per month: $18,150
Assuming a 3:1 sales mix, calculate Midwest Furniture's current monthly average unit contribution margin, break-even sales volume, and number of units of Pine and Redwood tables at break-even point.

Assume the Midwest Furniture Company Sells Two Kinds of Picnic