How do I solve for the weighted-average contribution margin? Business Solutions sells upscale modular desk units (60% of sales) and office chairs (40% of sales). Selling prices are $1,250 per deskunit and $500 per chair. Variable costs are $750 per desk unit and $250 per chair. Fixed costs are $120,000.Required:1. Compute the weighted-average contribution margin.2. Compute the break-even point in units.3. Compute the number of units of each product that would be sold at the break-even point.Complete this question by entering your answers in the tabs below.Required 1 Required 2Required 3Compute the weighted-average contribution margin.Weighted-average contribution margin< Required 1Required 2 > After reading an article about activity-based costing in a trade journal for the furniture industry, Santana Rey decides to analyzeoverhead cost at Business Solutions. In a recent month, Santana found that setup costs, inspection costs, and utility costs made upmost of the company's overhead. Additional information about overhead follows.ActivitySet upInspectionUtilitiesTotalBudgeted Cost$ 20,0007,50010,000$ 37,500The following data pertain to Job 615.Direct materialsDirect laborOverheadSetupsParts inspectedMachine hours$$ 2,500$ 3,500Budgeted Activity Usage25 setups5,000 parts inspected5,000 machine hours (MH)2 setups400 parts inspected600 machine hoursRequired:1. Classify each of the three overhead activities as unit level, batch level, product level, or facility level.2. Assume Business Solutions allocates overhead cost using a plantwide rate based on 5,000 machine hours. Compute total productcost of Job 615.3. Assume Business Solutions uses activity-based costing. (a) Compute overhead activity rates. (b) Allocate overhead cost to Job 615.(c) Compute total product cost of Job 615.A

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Business Solutions sells upscale modular desk units (60% of sales) and office chairs (40% of sales). Selling prices are $1,250 per desk unit and $500 per chair. Variable costs are $750 per desk unit and $250 per chair. Fixed costs are $120,000. Required: 1. Compute the weighted-average contribution margin. 2. Compute the break-even point in units. 3. Compute the number of units of each product that would be sold at the break-even point.

Business Solutions sells upscale modular desk units (60% of sales) and office chairs (40% of sales). Selling prices are $1,250 per desk unit and $500 per chair. Variable costs are $750 per desk unit and $250 per chair. Fixed costs are $120,000. Required: 1. Compute the weighted-average contribution margin. 2. Compute the break-even point in units. 3. Compute the number of units of each product that would be sold at the break-even point.

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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