Break even point units, What is the number of units of each

Break even point units

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Reference no: EM13915893

Hog town Manufacturing Company produces the following three products: Saws, Knives, Measuring Tapes

Saws Knives Measuring Tapes

Selling price per unit $ 40.00 $ 16.00 $ 50.00
Variable costs per unit 28.00 12.00 30.00

The company has $76,000 of fixed costs and, on average, its sales have the following ratio: 4 saws, 3 knives and 2 measuring tapes.

a. What is the number of units of each product that must be sold for Hog town to achieve its breakeven point:
Break-even point units Saws Knives Tapes

b. What would be the effect on the firm's breakeven point if the sales ratio changes to 2 saws, 3 knives and 4 measuring Tapes? Briefly explain your answer.

Reference no: EM13915893

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