Question: I need help solving my managerial accounting problem 7, thank you! PA7. LO 3.4 Manateah Manufacturing produces 3 models of window air conditioners: model 101,
I need help solving my managerial accounting problem 7, thank you!

PA7. LO 3.4 Manateah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: Sales Price Variable Cost Product per Unit per Unit Model 101 $275 $185 Model 201 350 215 Model 301 400 245 The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Solution A Calculate the sales price per composite unit B. What is the contribution margin per composite unit? C. Calculate Manatoah's break-even point in both dollars and units D. Using an income statement format, prove that this is the break-even point. Sales Price Variable Cost Contribution Product per Unit per Unit Margin per Unit Model 101 (Ratio 4) 275 185 Model 201 (Ratio 3) 350 215 Model 301 (Ratio 2) 400 245 Composite unit Composite Composite Composite Sales Price Variable Cost Cont. Margin Break even in composite units = Number of units per product Model 101 break even units x 4 units per composite Model 201 break even units x 3 units per composite Model 301 break even units x 2 unite per composite Sales Model 101 * $275 Model 201 * $350
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
