Ryan's Landscaping sells a quality brand of hoes,shovels,and rakes in a sales mix of 2:4:2.The company's fixed costs are $61,600.Product data include the following:
$\begin{array}{lrr}
&\text {Unit Sales}&\text { Unit Variable}\
&\text { Price }&\text { Costs}\
\text { Hoes } & \$ 12 & \$ 8 \
\text { Shovels } & 15 & 7 \
\text { Rakes } & 16 & 8
\end{array}$

a. Compute the weighted-average contribution margin.
b. Determine the weighted-average breakeven point.
c. Calculate the breakeven point for each product.
d. Determine the breakeven point in sales dollars.

Question

Ryan's Landscaping sells a quality brand of hoes,shovels,and rakes in a sales mix of 2:4:2.The company's fixed costs are $61,600.Product data include the following:
 $\begin{array}{lrr}
&\text {Unit Sales}&\text { Unit Variable}\
&\text { Price }&\text { Costs}\
\text { Hoes } & \$ 12 & \$ 8 \
\text { Shovels } & 15 & 7 \
\text { Rakes } & 16 & 8
\end{array}$
 
a. Compute the weighted-average contribution margin.
b. Determine the weighted-average breakeven point.
c. Calculate the breakeven point for each product.
d. Determine the breakeven point in sales dollars.

Quizplus · Accepted Answer

The Answer of Ryan's Landscaping sells a quality brand of hoes,shovels,and rakes in a sales mix of 2:4:2.The company's fixed costs are $61,600.Product data include the following:
 $\begin{array}{lrr}
&\text {Unit Sales}&\text { Unit Variable}\
&\text { Price }&\text { Costs}\
\text { Hoes } & \$ 12 & \$ 8 \
\text { Shovels } & 15 & 7 \
\text { Rakes } & 16 & 8
\end{array}$
 
a. Compute the weighted-average contribution margin.
b. Determine the weighted-average breakeven point.
c. Calculate the breakeven point for each product.
d. Determine the breakeven point in sales dollars.

Ryan's Landscaping Sells a Quality Brand of Hoes,shovels,and Rakes in a Sales