break-even point
Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows:
Product | Sales Price per Unit |
Variable Cost per Unit |
Model 101 | $275 | $185 |
Model 201 | 355 | 220 |
Model 301 | 405 | 240 |
The current product mix is 4:3:2. The three models share total fixed costs of $328,500.
A. Calculate the sales price per composite unit.
Sales price $fill in the blank 363349fb9022017_1 per composite unit
B. What is the contribution margin per composite unit?
Contribution margin $fill in the blank 363349fb9022017_2 per composite unit
C. Calculate Manatoah’s break-even point in both dollars and units.
Break-even point in dollars $fill in the blank 363349fb9022017_3
Break-even point in units fill in the blank 363349fb9022017_4 units
D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0".
Income Statement | |
Sales | |
Model 101 | $fill in the blank 2e7ad9fe601705b_1 |
Model 201 | fill in the blank 2e7ad9fe601705b_2 |
Model 301 | fill in the blank 2e7ad9fe601705b_3 |
Total Sales | $fill in the blank 2e7ad9fe601705b_4 |
Variable Costs | |
Model 101 | $fill in the blank 2e7ad9fe601705b_5 |
Model 201 | fill in the blank 2e7ad9fe601705b_6 |
Model 301 | fill in the blank 2e7ad9fe601705b_7 |
Total Variable Costs | $fill in the blank 2e7ad9fe601705b_8 |
Contribution Margin | $fill in the blank 2e7ad9fe601705b_9 |
Fixed Costs | fill in the blank 2e7ad9fe601705b_10 |
Net Income | $fill in the blank 2e7ad9fe601705b_11 |
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