1) What is the basket contribution margin? dollars

2) What is the break-even number of packages? units

3) What is the break-even number of figurines? units

4) With the new information, what is the basket contribution margin? dollars

5) The new break-even number of packages? units

6) The new break-even number of vases is? units

7) The new break-even number of figurines is? units

Parker Pottery is considering upgrading its factory to improve the quality of its products. The upgrade will add $13,150 per year to total fixed costs. If the upgrade is successful, the projected sales of vases will be 1,500, and figurine sales will increase to 1,000 units.

Parker Pottery produces a line of vases and a line of ceramic figurines. Each line uses the same equipment and labour; hence, there are no traceable fixed costs. Common fixed costs equal $75,000. Parker's accountant has begun to assess the profitability of the two lines and has gathered the following data for last year: Vases Figurines $100 75 Price Variable cost Contribution margin Number of units $175 105 $ 70 $ 25 1,000 500 Parker Pottery produces a line of vases and a line of ceramic figurines. Each line uses the same equipment and labour; hence, there are no traceable fixed costs. Common fixed costs equal $75,000. Parker's accountant has begun to assess the profitability of the two lines and has gathered the following data for last year: Vases Figurines $100 75 Price Variable cost Contribution margin Number of units $175 105 $ 70 $ 25 1,000 500