PB7. LO 3.4 Abilene Industries manufactures and sells three products (XX, YY, and ZZ). Thesales price and unit variable cost for the three products are as follows:ProductXXSales Priceper Unit$756055Variable Costper Unit$452515ZZTheir sales mix is reflected as a ratio of 4:2:1. Annual fixed costs shared by the three productsare $345,000 per year.A. What are total variable costs for Abilene with their current product mix?B. Calculate the number of units of each product that will need to be sold in order forAbilene to break even.C. What is their break-even point in sales dollars?D. Using an income statement format, prove that this is the break-even point.MacBook AirFocus

Sales mix is the ratio of more than one product that a company offers. Under CVP analysis…

Answered: A. What are total variable costs for…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7PB: Abilene Industries manufactures and sells three products (XX, W, and ZZ). The sales price and unit...

See similar textbooks

Similar questions

can you please help me with the attached question
PA 6. Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows:Product, Sales Price per Unit, Variable Cost per Unit (respectively): AA $50, $30; BB 40, 15; CC 30, 10.Their sales mix is reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $258,000 per year. What are total variable costs for Morris with their current product mix?Calculate the number of units of each product that will need to be sold in order for Morris to break even.What is their break-even point in sales dollars?Using an income statement format, prove that this is the break-even point.
ch7.46.1 Lotts Company produces and sells one product. The selling price is $10, and the unit variable cost is $6. Total fixed cost is $10,000. Unless otherwise instructed, round all total dollar figures (e.g., sales, total contribution margin) to the nearest dollar, breakeven or target units to the nearest unit, and unit costs and unit contribution margins to the nearest cent. Round ratios to four significant digits. For all the graphs below, the plus-marked line is total revenue, and the heavy solid line is total cost. graphs are attached. Required: 1. Of the four graphs below, choose the correct CVP graph for Lotts Company. What is the break-even point in units?Correct answer is ?
Qq.10. Subject :- Account
s
(12.) Multi-product Co. produces these products with the following characteristics: Product Price / unit Unit Variable Cost Sr1 P5 3 2 100,000 150,000 Tp2 P6 Pq4 P7 4 Expected Sales 250,000 Total Fixed costs for the company are P1,240,000. Assuming that the product mix would be the same at the break-even point, compute the break-even point in: (a) Units (total and by product line), and (b) Sales in pesos (total and by product line).
EA5. LO 2.2Rose Company has a relevant range of production between 10,000 and 25,000 units. The following cost data represents average cost per unit for 15,000 units of production. Using the cost data from Rose Company, answer the following questions: If 10,000 units are produced, what is the variable cost per unit? If 18,000 units are produced, what is the variable cost per unit? If 21,000 units are produced, what are the total variable costs? If 11,000 units are produced, what are the total variable costs? If 19,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?
The following information is for the Jeffries Corporation: $16.00 Selling price per unit Variable cost per unit Product A: $10.00 Selling price per unit Variable cost per unit Product B: $33.00 $11.00 Total fixed costs $578,000 What is the breakeven point, assuming the sales mix consists of three units of Product A and one unit of Product B? A. 96,333 units of A and 0 units of B OB. 43,350 units of A and 14,450 units of B OC. 17,515 units of A and 5,838 units of B O D. 14,450 units of A and 43,350 units of B
The following information relates to the operations of a company; cost per unit from supplier- GH¢80, variable cost per unit GH¢40 and total fixed cost of GH¢300000. The company determines its selling price by adding a margin of 20%. What is the breakeven quantity?
PE 4. Maharlika Company manufacture two products, Alpha and Beta. Fixed costs equal P146,000. Product Alpha sells for P12 and has variable cost of P6. Product Beta sells for P8 and has variable costs of P5. 1. If Maharlika sells 20,000 units of Alpha and 40,000 units of Beta, what is the net income? 2. Assuming the sales given in Question number 1, how many units of Alpha and Beta to breakeven? 3. Assume Maharlika has the opportunity to rearrange its plant to produce only Product Beta. If this is done, fixed cost will decrease by P35,000, and 70,000 units of Product Beta can be produced and sold. Compute the effect of this change on profit.
please answer all three subparts
Mondstadt Corporation sells two products, X and Y at a rate of 3 units and 5 units respectively. The following data are available: (Final answer must be DOUBLE RULE) X Y Unit Selling Price 25 23 Unit Variable Cost 12 10 Total Fixed Cost P 465,000 1. Determine the weighted contribution margin per unit 2. Compute for the combined breakeven point in units 3. Determine the weighted contribution margin ratio 4. Compute for the combined break-even in peso sales 5. Compute for the break-even point in peso sales for: а. Product X b. Product Y 6. Prepare the contribution margin income statement for both products

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS