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Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and contribution margin per unit are as follows.
Sales Mix ContributionMargin per Unit Lawnmowers 20 % $40 Weed-trimmers 50 % $30 Chainsaws 30 % $70
Yard Tools has fixed costs of $7,515,640.
Compute the number of units of each product that Yard Tools must sell in order to break even under this product mix.
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During the current year, Hugo sells equipment for $150,000, which it placed in service in 2009. The equipment cost $175,000, and $55,000 of depreciation deductions was allowed. The results of the sale are
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