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Question - Saline Aquarium, Inc., manufactures and sells aquariums, water pumps, and air filters. The sales mix is 1:2:2 (i.e., for every one aquarium sold, two water pumps and two air filters are sold). Using the contribution margin approach, find the breakeven point in units for each product. The company's fixed costs are $52,000. Other information is as follows:
Selling Price per Unit
Variable Costs per Unit
Aquariums
$60
$25
Water pumps
20
12
Air filters
10
3
Using the variable costing income statement, calculate the company's break even point in sales dollars and in units. Can the break even point be calculated easily using the full costing income statement? Why or why not?
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