Bonita Industries has two divisions; Sporting Goods and Sports Gear. The sales mix is 75%for Sporting Goods and 25% for Sports Gear, as determined by total sales dollars. Bonitaincurs $9500000 in fixed costs. The contribution margin ratio for Sporting Goods is 40%,while for Sports Gear it is 70%. What will sales revenue be for the Sporting Goods Divisionat the break-even point?$11400000$14843750$8000000O $5000000

BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…

Answered: Bonita Industries has two divisions;…

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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Chovanec Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 170 100% Variable expenses 68 40% Contribution margin $ 102 60% Fixed expenses are $521,000 per month. The company is currently selling 7,000 units per month. Management is considering using a new component that would increase the unit variable cost by $6. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 500 units. What should be the overall effect on the company's monthly net operating income of this change? Multiple Choice increase of $6,000 decrease of $6,000 decrease of $48,000 increase of $48,000
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Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $554,200, and the sales mix is 40% bats and 60% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats 50 40 Gloves 130 80 a. Compute the break-even sales (units) for the overall enterprise product, E. units b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point? Baseball bats units Baseball gloves units
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Wok of Fame, Inc., makes and sells woks at a price of $5.00 per unit. Variable cost is $3.00 per unit. The company's total fixed costs are $52,500. How much must total sales be if Wok of Fame wants to earn an operating income of $17,500? $100,000 $70,000 $175,000 $17,500 $26,250
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Benson Company, which produces and sells a small digital clock, bases its pricing strategy on a 25 percent markup on total cost. Based on annual production costs for 10,000 units of product, computations for the sales price per clock follow. Unit-level costs $150,000 50,000 200,000 50,000 $250,000 Fixed costs Total cost (a) Markup (a x 0.25) Total sales (b) Sales price per unit (b ÷ 10,000) 25 Required a. Benson has excess capacity and receives a special order for 7,000 clocks for $21 each. Calculate the contribution margin per unit. Based on this, should Benson accept the special order? b. Prepare a contribution margin income statement for the special order. Complete this question by entering your answers in the tabs below. Required A Required B Benson has excess capacity and receives a special order for 7,000 clocks for $21 each. Calculate the contribution margin per unit. Based on this, should Benson accept the special order? Contribution margin per unit Should Benson accept the…

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