Kirchner Corporation produces three models of lawnmowers ? Economy, Standard and Fancy. The following data is available for 20X0.

Fixed costs for the combined sales are $170.3 million. During the year, selling prices, variable costs per unit, and fixed costs were according to budget. However, the actual units sold were the following:

Economy.................................775Standard.................................550Fancy.......................................350..............................................1,675

Required:

Calculate the break-even sales volume for the year, using (a) budgeted and (b) actual sales mix.

Transcribed Image Text:

Budget, 20X0 Variable Contribution Units Sales Costs 875 $ 81,900 $ 75,600 Economy $157,500 99,000 49,500 450 49,500 Standard Fancy 350 112,000 44.800 67.200 1,675 $368,500 $192,300 Total $176,200