Bramble Corp. has gathered the following information concerning one model of shoe:Variable manufacturing costs$40000Variable selling and administrative costs$20000Fixed manufacturing costs$160000Fixed selling and administrative costs$120000Investment$1500000ROI30%Planned production and sales5000 pairsWhat is the total cost per pair of shoes?$96$148$68$40

Fixed costs are costs that do not change with change in level of activity. Variable costs changes…

Answered: Bramble Corp. has gathered the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

International Printer Machines (IPM) builds three computer printer models: Alpha, Beta, and Gamma. Information for these three products is as follows: Alpha Beta Gamma Total Selling price per unit $250 $400 $1500 Variable cost per unit $80 $200 $800 Expected unit sales (annual) 12,000 6,000 2,000 20,000 Sales mix 50 percent 40 percent 10 percent 100 percent Total annual fixed costs are $5,000,000. Assume the sales mix remains the same at all levels of sales. Required:a) Calculate the weighted average unit contribution margin, assuming a constant sales mix. b) How many units of each printer must be sold to break even? c) i) Explain what is the margin of safety ii) Calculate in sales units the margin of safety for IPM, assuming projected sales are25,000 units?
Can you help me with CVP Drill #14?
International Printer Machines (IPM) builds three computer printer models: Alpha, Beta, andGamma. Information for these three products is as follows:Alpha Beta Gamma TotalSelling price per unit $250 $400 $1 500Variable cost per unit $80 $200 $800Expected unit sales (annual) 12,000 6,000 2,000 20,000Sales mix 50 percent 40 percent 10 percent 100 percentTotal annual fixed costs are $5,000,000. Assume the sales mix remains the same at all levelsof sales.Required:a) Calculate the weighted average unit contribution margin, assuming a constant sales mix. b) How many units of each printer must be sold to break even? (3 marks)c) i) Explain what is margin of safety ii) Calculate in sales units the margin of safety for IPM, assuming projected sales are25,000 units?

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

Variable manufacturing costs	$40000
Variable selling and administrative costs	$20000
Fixed manufacturing costs	$160000
Fixed selling and administrative costs	$120000
Investment	$1500000
ROI	30%
Planned production and sales	5000 pairs