3. JJ Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost for each follows: Product                            Selling price per unit             Variable cost per unit Trunk switch                           $60.00                                        $28.00 Gas door switch                     $75.00                                        $33.00 Glove box light                       $40.00                                        $22.00 Their sales mix is reflected in the ratio 4:4:1.  What is the overall Composite Unit Contribution Margin for JJ Manufacturing with their current product mix?  If annual fixed costs shared by the three products are $18,840, how many units of each product are to be sold in order for JJ Manufacturing to break even? Trunk Switch? Gas Door Switch? Glove Box Light? Determine their break-even point in sales dollars. Trunk Switch? Gas Door Switch? Glove Box Light?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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3. JJ Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost for each follows:

Product                            Selling price per unit             Variable cost per unit

Trunk switch                           $60.00                                        $28.00

Gas door switch                     $75.00                                        $33.00

Glove box light                       $40.00                                        $22.00

Their sales mix is reflected in the ratio 4:4:1. 

What is the overall Composite Unit Contribution Margin for JJ Manufacturing with their current product mix? 

If annual fixed costs shared by the three products are $18,840, how many units of each product are to be sold in order for JJ Manufacturing to break even?

  • Trunk Switch?
  • Gas Door Switch?
  • Glove Box Light?

Determine their break-even point in sales dollars.

  • Trunk Switch?
  • Gas Door Switch?
  • Glove Box Light?

 

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