Rhino’s Landscaping sells a quality brand of hoes, shovels, and rakes in a sales mix of 2:4:2 (25%, 50%, 25%). The company’s fixed costs are $61,000. Product data include the following:
Hoes Unit sales price $12……………..Unit Variable costs $8
Shovels unit sales price $15………….unit variable costs $7
Rakes unit sales price $16…………….unit variable costs $8
Required
a.) compute the overall contribution margin per unit for the company.
b.)Determine overall breakeven point for the company (total units)
c.)Calculate the breakeven point in units for each product:
Hoes
Shovels
Rakes
d.)Determine the overall breakeven point in total sales dollars for the company