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Hagrid Company has a weighted average contribution margin per unit of $5.00. Fixed costs are $104,332 This yoga company sells three products, and anticipates the following sales volume next year. Yoga Videos Yoga Equipment Yoga Mats Total Units 13,000 units 15,000 units 12,000 units 40,000 units What is the breakeven quantity for Yoga MATS next year

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facundobuzzetti

Answer:

Break-even units= 6,260 units

Explanation:

Giving the following information:

Hagrid Company has a weighted average contribution margin per unit of $5.00.

Fixed costs are $104,332.

Sales volume next year:

Yoga Videos= 13,000 units

Yoga Equipment= 15,000 units

Yoga Mats= 12,000

Total Units= 40,000 units

First, we need to calculate the break-even point in units.

Break-even point= fixed costs/ contribution margin

Break-even point= 104,332/5= 20,866 units

Now, we can calculate the break-even point units for Yoga Mats:

Weighted participation in sales= 12,000/40,000= 0.3

Break-even units= 20,866*0.3= 6,260 units

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