1) ABC Company sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus) based upon quantity of units sold. Q-Drive has a unit variable cost of $120 and a selling price of $160. Q- Drive Plus has a unit variable cost of $85 and a selling price of $225. The weighted-average unit contribution margin for ABC is A. $110. B. $80. C. $160. D. $70. 2) Sales mix is A. the trend of sales over recent periods. B. a measure of leverage used by the company. C. the relative percentage in which a company sells its multiple products. D. the mix of variable and fixed expenses in relation to sales. 3) MMM Corp. has a weighted-average unit contribution margin of $30 for its two products, Standard and Supreme. Expected sales for MMM are 70,000 Standard and 90,000 Supreme. Fixed expenses are $1,800,000. How many Standards would MMM sell at the break-even point? A. 60,000. B. 33,750. C. 70,000. D. 26,250. 4) Swifty Corporation sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q- Drive Plus) based upon quantity of units sold. Q-Drive has a unit variable cost of $90 and a selling price of $180. Q-Drive Plus has a unit variable cost of $115 and a unit selling price of $200. Swifty's fixed costs are $607,500. How many units of Q-Drive would be sold at the break-even point? A. 2,107 B. 4,916 C. 7,023 D. 2,025 5) Bonita Industries has two divisions: Sporting Goods and Sports Gear. The sales mix is 60% for Sporting Goods and 40% for Sports Gear, as determined by total sales dollars. Bonita incurs $5120000 in fixed costs. The contribution margin ratio for Sporting Goods is 20%, while for Sports Gear it is 70%. The break-even point in dollars is A. $1,945,600. B. $12,800,000. C. $10,240,000. D. $5,120,000.
1) ABC Company sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus) based upon quantity of units sold. Q-Drive has a unit variable cost of $120 and a selling price of $160. Q- Drive Plus has a unit variable cost of $85 and a selling price of $225. The weighted-average unit contribution margin for ABC is A. $110. B. $80. C. $160. D. $70. 2) Sales mix is A. the trend of sales over recent periods. B. a measure of leverage used by the company. C. the relative percentage in which a company sells its multiple products. D. the mix of variable and fixed expenses in relation to sales. 3) MMM Corp. has a weighted-average unit contribution margin of $30 for its two products, Standard and Supreme. Expected sales for MMM are 70,000 Standard and 90,000 Supreme. Fixed expenses are $1,800,000. How many Standards would MMM sell at the break-even point? A. 60,000. B. 33,750. C. 70,000. D. 26,250. 4) Swifty Corporation sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q- Drive Plus) based upon quantity of units sold. Q-Drive has a unit variable cost of $90 and a selling price of $180. Q-Drive Plus has a unit variable cost of $115 and a unit selling price of $200. Swifty's fixed costs are $607,500. How many units of Q-Drive would be sold at the break-even point? A. 2,107 B. 4,916 C. 7,023 D. 2,025 5) Bonita Industries has two divisions: Sporting Goods and Sports Gear. The sales mix is 60% for Sporting Goods and 40% for Sports Gear, as determined by total sales dollars. Bonita incurs $5120000 in fixed costs. The contribution margin ratio for Sporting Goods is 20%, while for Sports Gear it is 70%. The break-even point in dollars is A. $1,945,600. B. $12,800,000. C. $10,240,000. D. $5,120,000.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 58P: Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and...
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