Carr Company makes 2 products, buckets and shovels. Additional information follo
ID: 2456547 • Letter: C
Question
Carr Company makes 2 products, buckets and shovels. Additional information follows:
Buckets
Shovels
Units
1,000
1,500
Sales
$60,000
$25,000
Variable costs
25,200
13,750
Fixed costs
12,000
5,250
Net income
$22,800
$6,000
Pounds of plastic per unit
1.90
0.48
Profit per unit
$22.80
$4.00
Contribution margin per unit
$34.80
$11.25
The company can sell as many buckets and shovels as it can manufacture. How many total units of product will Carr sell at its breakeven point?
Buckets
Shovels
Units
1,000
1,500
Sales
$60,000
$25,000
Variable costs
25,200
13,750
Fixed costs
12,000
5,250
Net income
$22,800
$6,000
Pounds of plastic per unit
1.90
0.48
Profit per unit
$22.80
$4.00
Contribution margin per unit
$34.80
$11.25
Explanation / Answer
Statement showing computations Particulars Buckets Shovels Fixed Costs 12,000.00 5,250.00 Contribution Margin per unit 34.80 11.25 Break even point in Units = Fixed costs/ Cont p u Buckets = 12000 / 34.80 Shovels = 5250/11.25 344.83 466.67