Q2: The following monthly budgeted data are available for a wholesale company:ProductProductProductABс$800,000 $400,000 $200,000640,000 240,000 140,000$160,000 $160,000 $60,000SalesVariable expensesContribution marginThe budgeted total fixed expense is $ 150,000. Required:a) Calculate the break-even sales for the month?b) Calculate the margin of safety in sales dollars?c) What is the sales Mix?

Break even Point in case of Multiple products: 1 .The sales mix is a calculation that determines the…

Answered: a) Calculate the break-even sales for…

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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How many statements below regarding margin of safety are correct? 1. It is the amount by which sales can be reduced without incurring a loss. 2. It is the difference between budgeted sales and breakeven sales. 3. It can be expressed in terms of unit, pesos or percentage of sales. 4. Its presence indicates that the company expects profit. 5. The product of margin of safety units and unit contribution margin is the projected profit for the period. 6. The higher the margin of safety, the lower is the risk of incurring operating loss. 3 4
Compute the break-even point in sales dollars for the company as a whole and the margin of safety in both dollars and percentage of sales.
If a company has three lots of products for sale, purchase 1 (earliest) for $17, purchase 2 (middle)for $15, purchase 3 (latest) for $12, which of the following statements is true?A. This is an inflationary cost pattern.B. This is a deflationary cost pattern.C. The next purchase will cost less than $12.D. None of these statements can be verified
Which will cause the gross profit of last period to vary with the current period: 1. change in sales mix. 2. change in quantity sold. 3. change in units produced. 4. change in production costs. 5. change in unit selling prices 6. change in variable period costs A. 2, 4 and 5 B. 1, 2, 4 and 5 C. 1, 2, 3, 4 and 5 D. 1, 2, 4, 5 and 6
Which of the following is an example of a lagging indicator in OPM? A) Customer satisfaction surveys B) Employee training hours C) Quarterly sales results D) Number of new product launches
Bulldogs Inc. wants to determine the impact of the change in selling price of its sole product in relation to the analysis of its gross profit. Which of the following must the company determine? a. Sales Volume Variance b. Cost Price Variance c. Volume Variance d. Sales Price Variance
Please help me. Thankyou.
Suppose that one of Willcom's sellers sells two types of projects with pricing as follows: Projector X costs: $16 per unit if the order quantity is less than 125; $15 per unit if the quantity is at least 125 but less than 300; $14.5 per unit if the quantity is at least 300 but less than 450; $14 per unit if the order quantity is at least 450. Project Y costs $16 per unit. Suppose placing an order costs the buyer $50 in processing costs. Holding cost is based on 30% annual rate. Annual demand for projector X is 600 and for projector Y is 250. What is the minimum annual total cost (ordering, holding and purchasing) if the buyer places independent orders for the two products?
Which of the below statements refers to the concept of deferred payment? a. It is the original selling price of a product. b. It is the sum of down payment and all the monthly payments. c. It is the net price paid after discount. d. It is the totality of all monthly payments and the amount financed.

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a) Calculate the break-even sales for the month? b) Calculate the margin of safety in sales dollars? c) What is the sales Mix?