Question

# Brief Exercise 20-8 [Incorrect answer.] Your answer is incorrect. Try again. NoFly Corporation sells three different...

Brief Exercise 20-8

[Incorrect answer.] Your answer is incorrect. Try again.

NoFly Corporation sells three different models of a mosquito “zapper.” Model A12 sells for \$55 and has variable costs of \$43. Model B22 sells for \$110 and has variable costs of \$72. Model C124 sells for \$416 and has variable costs of \$321. The sales mix of the three models is A12, 60%; B22, 30%; and C124, 10%.

If the company has fixed costs of \$192,766, how many units of each model must the company sell in order to break even? (Round Per unit values to 2 decimal palces, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.)

Model
A12
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B22
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C124
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Total break-even
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units

#### Homework Answers

Answer #1
 Nofly Corporation : Particulars Model A12 Model B22 Model C124 Selling price 55 110 416 Less: Variable costs 43 72 321 Contribution margin 12 38 95 Salex mix ratio 60% 30% 10% Weighted average contribution margin = (12*60%)+(38*30%)+(95*10%) \$    28.10 Per unit Total break even (in units) = Fixed costs / Contribution margin per unit 192766/28.1 6860 Units Now, These units will be apportioned to particular models In their sales mix ratio… Total break even units = 6860 units Model A12 Model B22 Model C124 Sales mix ratio 60% 30% 10% No of units 4116 2058 686 6860*60% 6860*30% 6860*10%
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