Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 17,920 DVDs and 4,480 equipment sets. Information on the two products is as follows: DVDs Equipment Sets Price $7.80 $24.80 Variable cost per unit 3.80 14.50 Total fixed cost is $92,050. Required:1.What is the sales mix of DVDs and equipment sets? 2.Compute the break-even quantity of each product.

Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 17,920 DVDs and 4,480 equipment sets. Information on the two products is as follows: DVDs Equipment Sets Price $7.80 $24.80 Variable cost per unit 3.80 14.50 Total fixed cost is $92,050. Required:1.What is the sales mix of DVDs and equipment sets? 2.Compute the break-even quantity of each product.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

	DVDs	Equipment
Price	$7.80	$24.80
Variable cost per unit	3.80	14.50

Similar questions

Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of materials. The following data are available for the second quarter. Number of bikes assembled Coaster 750 Traveler 450 Total 1,200 Materials cost per bike Other costs: $ 638 $ 1,214 $ 313,800 396,800 261,800 354,800 Direct labor Depreciation and lease Supervision and control Factory administration Required: Witt Recreation Company uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. Operation cost Materials cost Total cost Unit cost Coaster Traveler Total $ 0
A buyer for home furnishings orders merchandise from a North Carolina vendor totaling 2,800. The vendor offers two options a) 3/10 net 30 FOB Destination (to buyers' warehouse or (b) 6/10 FOB Factory. If transportation costs are @250, which would be the better option for the buyer?
2. Keep-Or-Drop Decision, Alternatives, Relevant Costs Reshier Company makes three types of rug shampooers. Model 1 is the basic model rented through hardware stores and supermarkets. Model 2 is a more advanced model with both dry-and wet-vacuuming capabilities. Model 3 is the heavy-duty riding shampooer sold to hotels and convention centers. A segmented income statement is shown below. Model 1 Model 2 Model 3 Total Sales $240,000 $550,000 $655,000 $1,445,000 Less variable costs of goods sold (96,000) (174,200) (354,000) (624,200) Less commissions (4,200) (27,500) (22,000) (53,700) Contribution margin $139,800 $348,300 $279,000 $767,100 Less common fixed expenses: Fixed factory overhead (375,000) Fixed selling and administrative (291,000) Operating income $101,100 While all models have positive contribution margins, Reshier Company…
Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly, its cost per rear wheel assembly is as follows (based on annual production of 1,800 units): Direct materials $ 27 Direct labor 104 Variable overhead 19 Fixed overhead 44 Total $ 194 Trailblazers has offered to sell the assembly to Mobility for $166 each. The total order would amount to 1,800 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $20,000 per year. Accepting Trailblazers's offer would eliminate annual fixed overhead of $40,050. Required: a. Prepare a schedule that shows the total differential costs. (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no…
Outdoor Luggage, Incorporated, makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below: Ski Guard Golf Guard Selling price per unit $ 310 Variable cost per unit $ 150 $ 330 $ 130 Fishing Gi $ 275 $ 85 Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 8 minutes 7 pounds 15 minutes 9 pounds 5 minu 10 poun Required: 1. If the total time available on the plastic injection molding machine is the constraint, how much contribution margin per minute of the constrained resource is earned by each product? 2. Which product offers the most profitable use of the plastic injection molding machine? 3. If a severe shortage of plastic pellets required the company to cut back production so much that its new constraint has become the total available pounds of plastic pellets, how much contribution margin per pound of the constrained resource is earned by each product? 4.…
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
! Required information Self-Study Problem 11-2 (Algo) The Make-vs.-Buy Decision [The following information applies to the questions displayed below.] Highvalu Incorporated manufactures a moderately priced set of lawn furniture (a table and four chairs) that it sells for $320. The company currently manufactures and sells 7,900 sets per year. The manufacturing costs include $104 for direct materials and $64 for direct labor per set. The overhead charge per set is $54, which consists entirely of fixed costs. Assume that Highvalu currently purchases the chair cushions for its lawn set from an outside vendor for $21 per set. HighValu's chief operations officer wants an analysis of the comparative costs of manufacturing these cushions to determine whether bringing the manufacturing in-house would save the company money. Additional information shows that if HighValu were to manufacture the cushions, the direct materials cost would be $8 and the direct labor cost would be $6 per set. In…
NEED ANSWER FOR ALL OR SKIP PLEASE DO NOT SAY ABOUT YOUR GUIDELINES PROVIDE COMPLETE CORRECT WELL EXPLAINED FORMULATED ANSWER FOR ALL PARTS Disk City, Inc., is a retailer for digital video disks. The projected net income for the current year is $2,370,000 based on a sales volume of 270,000 video disks. Disk City has been selling the disks for $17 each. The variable costs consist of the $4 unit purchase price of the disks and a handling cost of $2 per disk. Disk City’s annual fixed costs are $600,000.Management is planning for the coming year, when it expects that the unit purchase price of the video disks will increase 20 percent. (Ignore income taxes.)Required:1. Calculate Disk City’s break-even point for the current year in number of video disks. (Round your final answer up to nearest whole number.)2. What will be the company’s net income for the current year if there is a 15 percent increase in projected unit sales volume?3. What volume of sales (in dollars) must Disk City achieve…
How to do this. Please explain. Thank you.
Sandy Bank, Incorporated, makes one model of wooden canoe. And, the information for it follows: Number of canoes produced and sold Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit Sandy Bank sells its canoes for $375 each. 450 Required 1 Required 2 $ 69,750 $ 468,000 $ 537,750 Required 3 $ 155.00 1,040.00 $ 1,195.00 650 $ 100,750 $ 468,000 $ 568,750 $ 155.00 720.00 $ 875.00 Complete this question by entering your answers in the tabs below. 800 Required: 1. Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales 2. If Sandy Bank sells 1,500 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales pr $500) 3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $110,000 profit. $ 124,000 $ 468,000 $ 592,000 $ 155.00 585.00 $ 740.00 Suppose that Sandy Bank raises its selling…