saline aquarium inc manufactures and sells aquariums water pumps and air filters 544664
Breakeven Point for Multiple Products
Saline Aquarium, Inc. manufactures and sells aquariums, water pumps, and air filters. The sales mix is 1:2:2 (i.e., for every one aquarium sold, two water pumps and two air filters are sold). Using the contribution margin approach, find the breakeven point in units for each product. The company’s fixed costs are $26,000. Other information is as follows:
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saline aquarium inc manufactures and sells aquariums water pumps and air filters 544664
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|
Selling Price per Unit |
Variable Costs per Unit |
|
|
Aquariums |
$60 |
$25 |
|
Water pumps |
20 |
$12 |
|
Air filters |
10 |
3 |
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