Break-Even with Multiple Products Wagner Enterprise sells two products, large tractors and small tractors. A large tractor sells for $86,800 per unit with variable costs of $39,928 per unit. Small tractors sell fo $47,600 per unit with variable costs of $22,848 per unit. Total fixed costs for the company are $2,520,000. Wagner Enterprises typically sells two large tractors for every three small tractors. Assuming the sales mix remains constant, how many large and small tractors are sold (in units) at Wagner's break-even point?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question
Break-Even with Multiple Products
Wagner Enterprise sells two products, large tractors and small tractors. A large tractor sells for $86,800 per unit with variable costs of $39,928 per unit. Small tractors sell for
$47,600 per unit with variable costs of $22,848 per unit. Total fixed costs for the company are $2,520,000. Wagner Enterprises typically sells two large tractors for
every
three small tractors.
Assuming the sales mix remains constant, how many large and small tractors are sold (in units) at Wagner's break-even point?
Transcribed Image Text:Break-Even with Multiple Products Wagner Enterprise sells two products, large tractors and small tractors. A large tractor sells for $86,800 per unit with variable costs of $39,928 per unit. Small tractors sell for $47,600 per unit with variable costs of $22,848 per unit. Total fixed costs for the company are $2,520,000. Wagner Enterprises typically sells two large tractors for every three small tractors. Assuming the sales mix remains constant, how many large and small tractors are sold (in units) at Wagner's break-even point?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Cost volume profit (CVP) analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education