Tress Enterprises manufactures shampoo and conditioner.Last year,Tress sold 120,000 bottles of product.Unit sales of conditioner amounted to 60% of the number of units of shampoo.This trend is expected to continue.The selling price for both products is $12.00,however,the variable cost of a unit of shampoo is $6.00,while the variable cost of a unit of conditioner is $8.00.Fixed costs are expected to be $420,000.

(a)Compute the quantity of each product sold.
(b)Compute the weighted-average contribution margin per unit.
(c)Compute the overall break-even point in units.
(d)Compute the unit sales of shampoo and conditioner at the break-even point.
(e)Compute the dollar sales of shampoo and conditioner at the break-even point.

Question

Tress Enterprises manufactures shampoo and conditioner.Last year,Tress sold 120,000 bottles of product.Unit sales of conditioner amounted to 60% of the number of units of shampoo.This trend is expected to continue.The selling price for both products is $12.00,however,the variable cost of a unit of shampoo is $6.00,while the variable cost of a unit of conditioner is $8.00.Fixed costs are expected to be $420,000.
​
(a)Compute the quantity of each product sold.
(b)Compute the weighted-average contribution margin per unit.
(c)Compute the overall break-even point in units.
(d)Compute the unit sales of shampoo and conditioner at the break-even point.
(e)Compute the dollar sales of shampoo and conditioner at the break-even point.

Quizplus · Accepted Answer

The Answer of Tress Enterprises manufactures shampoo and conditioner.Last year,Tress sold 120,000 bottles of product.Unit sales of conditioner amounted to 60% of the number of units of shampoo.This trend is expected to continue.The selling price for both products is $12.00,however,the variable cost of a unit of shampoo is $6.00,while the variable cost of a unit of conditioner is $8.00.Fixed costs are expected to be $420,000.
​
(a)Compute the quantity of each product sold.
(b)Compute the weighted-average contribution margin per unit.
(c)Compute the overall break-even point in units.
(d)Compute the unit sales of shampoo and conditioner at the break-even point.
(e)Compute the dollar sales of shampoo and conditioner at the break-even point.

Tress Enterprises Manufactures Shampoo and Conditioner