Bonita Industries has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Bonita incurs $5365000 in fixed costs. The contribution margin ratio for Sporting Goods is 30 % , while for Sports Gear it is 50%. What will sales be for the Sporting Goods Division at the break-even point? O $8109884 O $5075000 O $9425000. O $4350000.
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- Houpe Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 140 100% Variable expenses 42 30% Contribution margin $ 98 70% Fixed expenses are $490,000 per month. The company is currently selling 6,000 units per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $11 per unit. In exchange, the sales staff would accept a decrease in their salaries of $58,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 100 units. What should be the overall effect on the company's monthly net operating income of this change?ok ces O'Reilly Incorporated makes and sells many consumer products. The firm's average contribution margin ratio is 22%. Management is considering adding a new product that will require an additional $10,500 per month of fixed expenses and will have variable expenses of $6.5 per unit. Required: a. Calculate the selling price that will be required for the new product if it is to have a contribution margin ratio equal to 22%. Note: Round your answer to 2 decimal places. b. Calculate the number of units of the new product that would have to be sold if the new product is to increase the firm's monthly operating income by $8,500. Note: Do not round intermediate calculations. a. Selling price b. Number of units per unitVaughn Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of its three product lines is birthday candles 30%, standard tapered candles 55%, and large scented candles 15%. The contribution margin ratio of each candle type is shown below. Candle Type Contribution Margin Ratio Birthday 20% Standard tapered 30% Large scented 50% If the company’s fixed costs are $ 406,500 per year, what is the dollar amount of each type of candle that must be sold to break even? Birthday Standard tapered Large scented Total break-even point $ enter a dollar amount $ enter a dollar amount $ enter a dollar amount
- Sannella Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $ 220 66 $ 154 Percent of Sales 100% 30% 70% Fixed expenses are $991,000 per month. The company is currently selling 8,000 units per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $11 per unit. In exchange, the sales staff would accept a decrease in their salaries of $74,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 200 units. What should be the overall effect on the company's monthly net operating income of this change?A company produces several product lines. One of those lines generates the following annual cost and production data: The company adds 40% to its production cost in selling to the retailer. The retailer in turn adds a 50% profit margin when selling to its customers. How much would it cost a retailer to buy 100 units of the product? (a) $4800 (b) $6720 (c) $7200 (d) $1008Ed Vaughn Corporation has two divisions; Outdoor Sports and Indoor Sports. The sales mix is 60% for Outdoor Sports and 40% for Indoor Sports. Vaughn incurs $2360000 in fıxed costs. The contribution margin ratio for the Outdoor Sports Division is 40%, while for the Indoor Sports Division it is 20%. What is the total contribution margin at the break-even point? O $11800000 O $2360000 O $1416000 O $944000
- ABC Corporation sells its product for $195.70 per unit. In 2015 the company had total sales in units of 6,000. The total costs were the following: Variable cost of sales $457,800 Fixed cost of sales 100,000 Variable selling & administrative costs 108,500 Fixed selling & administrative costs 512,400 What is the best estimate of the total contribution margin?Value Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 32,000 parts is $90,000, which includes fixed costs of $30,000 and variable costs of $60,000. The company can buy this part from an external supplier for $5 per unit and avoid 10% of the fixed costs. If Value Electronics decides to outsource the production of the part, how will it impact its operating income? A. Operating income increases by $97,000. B. Operating income decreases by $100,000. C. Operating income decreases by $97,000. D. Operating income increases by $100,000.JPL Company has two segments - Retail and Commercial. The Retail segment has a contribution margin ratio of 40% and traceable fixed expenses of $70,000. Commercial has traceable fixed expenses of $50,000 and a contribution margin ratio of 55%. The company also has $30,000 of common fixed expenses. The break-even point in dollar sales for the Retail segment equals O $175,000 O $250,000 O $212,500 O $116,667
- Bonita Industries has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Bonita incurs $6012500 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. The break-even point in dollars is $15031250. $2224625. $13982558. $16250000.Corporation C is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for P133.60 per unit. Sales volume (units) 4,000 5,000 Cost of sales P383,600 P479,500 SGA costs 124,400 136,000 The best estimate of the total contribution margin when 4,300 units are sold is: (show formula and solution) b. P162,110 c. P28,380 a. P112,230 d. P45,1502. Suppose you manufacture and sell motorcycle helmets. Helmets sell for $25 each. Information about the company's costs is as follows Variable manufacturing cost per unit Variable selling and administrative cost per unit Fixed manufacturing overhead per month Fixed selling and administrative cost per month $7 $3 $300,000 $600,000 a) Determine the company's break-even point in units b) Determine the company's break-even sales volume in $