Question: Option 1 Amount Working Contribution Margin 45 60=15 Fixed Cost 4000 Break Even Sales Unit 89 4000/45 Option 2 Contribution Margin 15 Fixed Cost 600

Option 1

Amount Working

Contribution Margin 45 60=15

Fixed Cost 4000

Break Even Sales Unit 89 4000/45

Option 2

Contribution Margin 15

Fixed Cost 600

Break Even Sales Unit 40 600/15

If we operate far beyond our breakeven point (and still within the relevant range of the large mower) and mow 300 yards a week (something we can do with the large riding zero-turn lawnmower). At this level, which option will be more profitable or have the highest potential for profit?

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