How many printers in total must be sold to break even

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Problem - MacFarlane Printer Machines (MPM) builds three computer printer models: Inkjet, Laser, and Color Laser. Information for these three products is as follows:

 

Inkjet

Laser

Color Laser

Total

Selling price per unit

$255

$420

$1,680

 

Variable cost per unit

$105

$158

$840

 

Expected unit sales (annual)

12,600

6,300

2,100

21,000

Sales mix

60%

30%

10%

100%

Total annual fixed costs are $5,250,000. Assume that the sales mix remains the same at all levels of sales.

Required -

How many printers in total must be sold to break even?

How many units of each printer must be sold to break even?

How many printers in total must be sold to earn an annual profit of $1,000,000?

How many units of each printer must be sold to earn an annual profit of $1,000,000?

Reference no: EM131928377

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