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Roberson Company makes two types of backpacks. Data for the company’s activity during a typical month

Roberson Company makes two types of backpacks. Data for the company’s activity during a typical month are presented below:
School Model Hiker Model
Sales (units) 40,000 40,000
Selling price per unit $6 $18
Variable expenses per unit $2 $10

The company’s total fixed expanses are $80,000 per month. There are no beginning or ending inventories.
Required:

a. What is the per unit contribution margin for each of the two models?
b. What is the break-even point in sales dollars with the sales mix given above?
c. If total unit sales remain the same but the sales mix changes to 60,000 units of the school model and 20,000 units of the hiker model, what will the new break-even point in sales dollars be? Explain the reason for the change.

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