At one time, Del Monte Foods Company reported three separate operating segments: consumer products (which includes a variety of canned foods including tuna, fruit, and vegetables): pet products (which includes pet food and snacks and veterinary products); and soup and infant-feeding products (which includes soup, broth, and infant feeding and pureed products). In its annual report, Del Monte uses absorption costing. As a result, information regarding the relative composition of its fixed and variable costs is not available. We have assumed that $860.3 million of its total operating expenses of $1.920,3 million are fixed and have allocated the remaining variable costs across the three divisions. Sales data, along with assumed expense data, are provided below. Consumer products Pet products Soup and infant-feeding products ✓ Your answer is correct. Contribution margin ratio Sales mix percentage eTextbook and Media (in millions) Sales $1,031.8 Break-even point in dollars $ Sales from each product 837.3 302.0 Compute each segment's contribution margin ratio and the sales mix as a percentage of total sales dollars. (Round answers to 1 decimal place, e.g. 15.2%) $2.171.1 Consumer Products Variable Costs $610 40.9 % 475 % 350 Consumer Products 100 $1,060 7990070 168126 Pet Products 58.2 % 38.6 % Using the information computed in the part above, compute the company's break-even point in sales dollars, and then determine the amount of sales that would be generated by each division at the break-even point. (Round Weighted-Average Contribution Margin Ratio to 3 decimal places, e.g. 0.252 and final answers to 0 decir aces, eg. 1,525,357,879.) Pet Products Soup and Infant-Feeding 6483898 Products 66.9 % 13.9 % Attempts: 1 of 5 used Soup and Infant-Feeding Products 2338633
At one time, Del Monte Foods Company reported three separate operating segments: consumer products (which includes a variety of canned foods including tuna, fruit, and vegetables): pet products (which includes pet food and snacks and veterinary products); and soup and infant-feeding products (which includes soup, broth, and infant feeding and pureed products). In its annual report, Del Monte uses absorption costing. As a result, information regarding the relative composition of its fixed and variable costs is not available. We have assumed that $860.3 million of its total operating expenses of $1.920,3 million are fixed and have allocated the remaining variable costs across the three divisions. Sales data, along with assumed expense data, are provided below. Consumer products Pet products Soup and infant-feeding products ✓ Your answer is correct. Contribution margin ratio Sales mix percentage eTextbook and Media (in millions) Sales $1,031.8 Break-even point in dollars $ Sales from each product 837.3 302.0 Compute each segment's contribution margin ratio and the sales mix as a percentage of total sales dollars. (Round answers to 1 decimal place, e.g. 15.2%) $2.171.1 Consumer Products Variable Costs $610 40.9 % 475 % 350 Consumer Products 100 $1,060 7990070 168126 Pet Products 58.2 % 38.6 % Using the information computed in the part above, compute the company's break-even point in sales dollars, and then determine the amount of sales that would be generated by each division at the break-even point. (Round Weighted-Average Contribution Margin Ratio to 3 decimal places, e.g. 0.252 and final answers to 0 decir aces, eg. 1,525,357,879.) Pet Products Soup and Infant-Feeding 6483898 Products 66.9 % 13.9 % Attempts: 1 of 5 used Soup and Infant-Feeding Products 2338633
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 29P: Jellison Company had the following operating data for its first two years of operations: Jellison...
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please answer all the requirement with detailed working, Please provide answer in text (Without image)
Transcribed Image Text:At one time, Del Monte Foods Company reported three separate operating segments: consumer products (which includes a variety of
canned foods including tuna, fruit, and vegetables): pet products (which includes pet food and snacks and veterinary products); and
soup and infant-feeding products (which includes soup, broth, and infant feeding and pureed products).
In its annual report, Del Monte uses absorption costing. As a result, information regarding the relative composition of its fixed and
variable costs is not available. We have assumed that $860.3 million of its total operating expenses of $1.920,3 million are fixed and
have allocated the remaining variable costs across the three divisions. Sales data, along with assumed expense data, are provided
below.
Consumer products
Pet products
Soup and infant-feeding products
✓ Your answer is correct.
Contribution margin
ratio
Sales mix percentage
eTextbook and Media
(in millions)
Break-even point in dollars
Sales from each
product
Sales
$1,031.8
837.3
Compute each segment's contribution margin ratio and the sales mix as a percentage of total sales dollars. (Round answers to 1
decimal place, e.g. 15.2%)
$
302.0
$2.171.1
Consumer Products
Variable Costs
$610
40.9 %
475 %
350
Consumer Products
100
$1,060
7990070
168126
Pet Products
58.2 %
Using the information computed in the part above, compute the company's break-even point in sales dollars, and then determine
the amount of sales that would be generated by each division at the break-even point. (Round Weighted-Average Contribution
Margin Ratio to 3 decimal places, eg. 0.252 and final answers to 0 decir I places, eg. 1,525,357,879)
38.6 %
Pet Products
Soup and Infant-Feeding
Products
6483898
66.9%
13.9 %
Attempts: 1 of 5 used
Soup and Infant-Feeding
Products
2338633
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