5DokntintExercise 3-15A (Algo) Multiple product break-even analysis LO 3-6Stuart Company manufactures two products. The budgeted per-unit contribution margin for each product follows:Supreme$ 130(88)$ 42Sales priceVariable cost per unitContribution margin per unitSuper$ 102(68)$ 34Stuart expects to incur annual fixed costs of $141,960. The relative sales mix of the products is 70 percent for Super and 30 percent forSupreme.Requireda. Determine the total number of products (units of Super and Supreme combined) Stuart must sell to break even.b. How many units each of Super and Supreme must Stuart sell to break even?

Break even want is the point where no problem so it is able to recover all its cost. this analysis…

Answered: 5 Dok nt int Exercise 3-15A (Algo)…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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4.13 A company produces and sells two products at unit contribution margins of P4 for A and P10 for B. Fixed costs are P21,000. Instructions: If the planned sales mix is five units of A for each unit of B, what would be the breakeven point in units. (Indicate the product name and its corresponding number of units.)
Tough Tough makes two products, Rock and Hard and details are as follows: Rock Hard £ £ Selling price 20 25 Unit variable costs 11 13 Standard ratio of sales 60% 40% . Fixed costs are estimated at £1.02 million for the year and Tough is currently forecasting to generate total sales revenue of £4.4 million. Required: Calculate the break-even point in terms of total units and sales revenue, based on the forecast ratio of sales above. Sketch a profit-volume chart showing the situation in (a); show on the same chart the effect of changing the sales mix to 50% Rock and 50% Hard (keeping total forecast revenue the same). The company has realised that £325,000 of the fixed costs are only incurred by product Rock. Calculate the sales revenue required from Rock in order to cover the attributable fixed costs and provide a net contribution of £800,000 towards general fixed costs and profit.
Break-Even Analysis Feet-First Industries plans to sell 7,750 sleds at $60 each in the coming year. Variable cost is 60 percent of the sales price. Fixed factory overhead equals $44,540 and fixed selling and administrative expense equals $34,780. a. Calculate the units that Feet-First must sell in order to break even. 0 b. Calculate the sales revenue that Feet-First must earn to break even by using the contribution margin. $ 0 c. Confirm your answer in requirement b, by muliplying the number of break-even units in requirement a by the unit sales price. $ 0
4 At its $34 selling price, Atlantic Company has sales of $34,000, variable manufacturing costs of $5,000, fixed manufacturing costs of $2,000, variable selling and administrative costs of $5,000 and fixed selling and administrative costs of $2,000. What is the company's contribution margin per unit? Multiple Choice $29 $20 $22 $24
Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $599,400. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $460 $280 $180 ZZ 620 440 180 The sales mix for Products QQ and ZZ is 90% and 10%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product QQ units b. Product ZZ units
Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $567,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $500 $340 $160 zZ 280 160 120 The sales mix for Products QQ and ZZ is 50% and 50%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product QQ units b. Product ZZ units
Question 4 Ali Limited produces and sells two products. Product A sells for £12 per unit and has a total variable cost of £7.90, while Product B sells for £17 per unit and has a total variable cost of £11.20. For every 4 units of Product A sold, three of product B are sold. Ali Limited fixed costs are £131,850. Budgeted sales revenue is £428,500. Required: a) b) b) Calculate the Break-Even points in Units. Calculate the Margin of Safety in Units. Evaluate the relevance of Break-Even Analysis in decision making process.
Exercise 18-13 (Algo) Computing sales to achieve target income LO C2 Sunn Company manufactures a single product that sells for $145 per unit and whose variable costs are $87 per unit. The company's annual fixed costs are $916,400. Management targets an annual income of $1,450,000. (1) Compute the unit sales to earn the target income. Numerator: 1 1 Denominator: (2) Compute the dollar sales to earn the target income. Numerator: 1 1 Denominator: = || = = || Units to Achieve Target Units to achieve target 0 Dollars to Achieve Target Dollars to achieve target 0
Question Content Area Sales Mix and Break-Even Analysis Olmstead Company has fixed costs of $2,170,920. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $700 $380 $320 ZZ 940 760 180 The sales mix for Products QQ and ZZ is 35% and 65%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product QQ fill in the blank 1 unitsb. Product ZZ fill in the blank 2 units
Exercise 20.3 (Algo) Computing Required Sales Volume (LO20-4, LO20-5) The following is information concerning a product manufactured by Ames Brothers. Sales price per unit Variable cost per unit Total fixed manufacturing and operating costs (per month) 78 43 430,000 ces a. Determine the unit contribution margin. b. Determine the number of units that must be sold each month to break even. (Round your answer to the nearest whole number.) c. Determine the number of units that must be sold to earn an operating income of $234,000 per month. (Round your answer to the nearest whole number.) a. Unit contribution margin b. Break-even units C. Target sales in units 23 NOV 11 itv li 1 W %24 ...
7. Division X produces a single product for both Division Y and an external market. It has spare capacity to produce another 20,000 items. Additional details for Division X are as follows: Information for Division X Price of product sold to outside market Current transfer price Variable cost per item made in division Fixed costs per item (based on budget) Division Y has requested a further 5,000 items. £25 £20 £12 £6 What is the minimum price that Division X should ask per item? (a) £12 (b) £18 (c) £20 (d) £25
MC Qu. 7-70 Santa Fe Production sells a single product to Santa Fe Production sells a single product to wholesalers. The company's budget for the upcoming year revealed anticipated unit sales of 36,400, a selling price of $28, variable cost per unit of $10, and total fixed costs of $384,000. If Santa Fe’s unit sales are 300 units less than anticipated, its break-even point will: Multiple Choice increase by $18 per unit sold. decrease by $18 per unit sold. increase by $10 per unit sold. decrease by $10 per unit sold. not change.

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