A-5 Edward manages an electronics store where customers can purchase phones, tablets, or accessories for their technology needs. He istrying to plan for future profitability and came upon a break-even number (80 units in monthly sales) that his predecessor, Annie, hadcalculated. Unfortunately, Edward found no other supporting calculations or details to determine how many of those units werephones, tablets, and accessories.Realizing that he needs as much cost, volume, and revenue information as possible, Edward dug up the following information for thestore.Selling priceVariable cost/unitOther monthly fixed store costs:SalariesRentDepreciationMaintenanceInsuranceUtilitiesPhones$720360$6,3684,7002,5001.100700600Tablets Accessories$520312$11022 He also determined that 25% of sales volume generally is from tablets. Additionally, customers usually purchase 1.5 times as manyaccessories as they do phones.(a)Based on the above information, what is the sales mix for the three products?PhonesTabletsAccessories%

Sales mix is the % of sale of a product in the total sales. The total sales has is the sale from 2…

Answered: as much cost, volume, and revenue…

Business

Accounting

as much cost, volume, and revenue information as possible. Edward dug Phones $720 Tablets $520 Accessories $110

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 17E

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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

A-5

Edward manages an electronics store where customers can purchase phones, tablets, or accessories for their technology needs. He is
trying to plan for future profitability and came upon a break-even number (80 units in monthly sales) that his predecessor, Annie, had
calculated. Unfortunately, Edward found no other supporting calculations or details to determine how many of those units were
phones, tablets, and accessories.
Realizing that he needs as much cost, volume, and revenue information as possible, Edward dug up the following information for the
store.
Selling price
Variable cost/unit
Other monthly fixed store costs:
Salaries
Rent
Depreciation
Maintenance
Insurance
Utilities
Phones
$720
360
$6,368
4,700
2,500
1.100
700
600
Tablets Accessories
$520
312
$110
22

He also determined that 25% of sales volume generally is from tablets. Additionally, customers usually purchase 1.5 times as many
accessories as they do phones.
(a)
Based on the above information, what is the sales mix for the three products?
Phones
Tablets
Accessories
%

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