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Question - Grass King manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and contribution margin per unit are as follows.
Sales Mix Contribution Margin per Unit
Lawnmowers 30% $50
Weed-trimmers 50% $24
Chainsaws 20% $55
Grass King has fixed costs of $6,481,660.
Compute the number of units of each product that Grass King must sell in order to break even under this product mix.
The book value of LLL's assets and owners' equity before the acquisition were $50 million and $30 million, respectively. Compute the fair value of LLL's liabilities that Compton incurred in the acquisition.
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