Business Solutions sells upscale modular desk units (60% of sales) and office chairs (40% of sales). Selling prices are $1,180 per deskunit and $670 per chair. Variable costs are $710 per desk unit and $335 per chair, Fixed costs are $195,520Required:1. Compute the weighted average contribution margin2. 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 2 Required 3Compute the weighted average contribution margin. (Round your final answer to the nearest whole number.)Weighted average contribution margin< Required 1Required 2 >

The break-even point is the inflection point at which contribution equals fixed cost. In other…

Answered: Business Solutions sells upscale…

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

Northwest Technology Inc. manufactures and sells two products, digital game players and computer tablets. The fixed costs are $936,000, and the sales mix is 70% game players and 30% computer tablets. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Game players $ 50 $30 Tablets 120 80 a. Compute the break-even sales (units) for the overall product, E.units b. How many units of each product, game players and tablets, would be sold at the break-even point? Digital game players units Computer tablets units
A jeans maker is designing a new line of jeans called Slams. Slams will sell for $205 per unit and cost $164 per unit in variable costs to make. Fixed costs total $60,000. 1. Compute the contribution margin per unit. Contribution margin 2. Compute the contribution margin ratio. Numerator: I Denominator: 1 3. Compute income if 5,000 units are produced and sold. Income Contribution Margin Ratio = Contribution margin ratio 0
Business Solutions sells upscale modular desk units (60% of sales) and office chairs (40% of sales). Selling prices are $1,340 per desk unit and $590 per chair. Variable costs are $805 per desk unit and $295 per chair. Fixed costs are $171,210.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.
Furillo Furriers has a contribution margin ratio of 80 percent and must sell 12,000 stoles at a unit price of $400 to break even I Compute total fixed costs. a. Compute variable cost per unit b. Develop the company's cost formula.
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
Zhao Company has fixed costs of $455,600. Its single product sells for $191 per unit, and variable costs are $124 per unit. If the company expects sales of 10,000 units, compute its margin of safety (a) in dollars and (b) as a percent of expected sales. $ a. Margin of safety (in dollar) 611,200 b. Margin of safety (%)
Jaybird Company operates in a highly competitive market where the market price for its product is $145 per unit. Jaybird desires a 30% profit per unit. Jaybird expects to sell 5,000 units. Additional information is as follows: Variable Costs per Unit Fixed Costs (total) Direct materials S 24 Overhead $ 45,000 Direct labor 25 General and administrative 18,000 Overhead 23 General and administrative 29 To achieve the target cost per unit, Jaybird must reduce total expenses by how much? Multiple Choice $ 62,000 $51,000 $70, 500 $67,500 $60, 500
Handy Home sells windows (60% of sales) and doors (40% of sales). The selling price of each window is $220 and of each door is $540. The variable cost of each window is $135 and of each door is $370. Fixed costs are $600,950. S (1) Compute the weighted-average contribution margin. Sales mix Windows Doors Contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin. Numerator: Denominator: 7 Windows Doors Total Weighted-average contribution margin (3) Compute the number of units of each product that will be sold at the break-even point. Sales mix Number of units to break even. = Total per unit Break Even Units Break Even Units Unit sales at break-even point
Big Chill, Inc. sells portable dehumidifier units at $193. Unit variable costs are $110. Fixed costs are $4,175,000. Management has set a profit objective of 15.1% return on sales. Calculate the sales volume in dollars that will provide a 15.1% return on sales. Round your answer to the nearest dollar .
Estela Company produces skateboards and scooters. Their per unit selling prices and variable costs follow. Skateboards require 2 machine hours per unit. Scooters require 3 machine hours per unit. Selling price per unit Skateboards $ 200 Scooters) $ 400 120 310 Variable costs per unit (a) Compute the contribution margin per unit (b) Compute the contribution margin per machine hour (a) Contribution margin pet und Contion margm per machine hour Skateboards Scooters
Please help me
Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $251,600, 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

SEE MORE QUESTIONS

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