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2-2 Current Designs manufactures two different types of kayaks, rotomoulded kayaks and composite kayaks. The following...

2-2

Current Designs manufactures two different types of kayaks, rotomoulded kayaks and composite kayaks. The following information is available for each product line.
Rotomoulded Composite
Sales price/unit $840 $1,760
Variable costs/unit $500 $1,180

The company’s fixed costs are $722,000. An analysis of the sales mix identifies that rotomoulded kayaks make up 80% of the total units sold.

(a)

Your answer is correct.
Determine the weighted-average unit contribution margin for Current Designs.
Weighted-average unit contribution margin

$388
(CORRECT!)
Attempts: 1 of 1 used

(b)

Your answer is correct.
Determine the break-even point in units for Current Designs and identify how many units of each type of kayak will be sold at the break-even point. (Round answers to 0 decimal places, e.g. 5,275.)
Break-even Sales

$1861

 units
(CORRECT)!
Rotomolded Kayaks Composite Kayaks
Break-even Sales Distribution

1489

 units

372

 units
(CORRECT!)
Attempts: 1 of 1 used

(c)

Assume that the sales mix changes, and rotomoulded kayaks now make up 70% of total units sold.

Calculate the total number of units that would need to be sold to earn a net income of $1.76 million and identify how many units of each type of kayak will be sold at this level of income. (Round answers to 0 decimal places, e.g. 5,275.)
Required Sales units
Rotomolded Kayaks Composite Kayaks
Break-even Sales Distribution units units

Answers to Question A and B are correct. Please use information from A,B to answer question C. Thank You

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