Question

safari co. sells two products: orks and zins. last year, safari sold 21,000 units of orks and 14,000 units of zins. related data are as follows:

\

$$\begin{tabular}{cccc} product & unit selling price & unit variable cost & unit contribution margin \\\\ \\hline orks & \\$120 & \\$80 & \\$40 \\\\ zins & 80 & 60 & 20 \\end{tabular}$$

note: \e\ represents composite unit.

determine the following:
a. safari co.s sales mix.
orks: %
zins: %
b. safari co.s unit selling price of e
c. safari co.s unit contribution margin of e
d. safari co.s break-even sales in units of e assuming that last years fixed costs were \\$160,000

Explanation:

Calculate the sales mix percentage for each product

Using the Sales Mix knowledge point

$$
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$$

Determine the unit selling price of the composite unit E

Using the Sales Mix knowledge point

$$
LATEXBLOCK1
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Determine the unit contribution margin of the composite unit E

Using the Unit Contribution Margin and Sales Mix knowledge points

$$
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Calculate the break-even sales in units of E

Using the Break-Even Analysis knowledge point

$$
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$$

Answer:

Question a

Orks: <blank>60</blank>%
Zins: <blank>40</blank>%

Question b

Safari Co.'s unit selling price of E: <blank>\$104</blank>

Question c

Safari Co.'s unit contribution margin of E: <blank>\$32</blank>

Question d

Safari Co.'s break-even sales in units of E: <blank>5,000</blank> units of E