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Current Designs manufactures two different types of kayaks: rotomoulded kayaks and composite kayaks. The following information is available for each product line. Sales price/unit Variable costs/unit Rotomoulded $880 520 Composite $1,840 1,250 The company's fixed costs are $771,400. An analysis of the sales mix identifies that rotomoulded kayaks make up 80% of the total units sold.

Current Designs manufactures two different types of kayaks: rotomoulded kayaks and composite kayaks. The following information is available for each product line. Sales price/unit Variable costs/unit Rotomoulded $880 520 Composite $1,840 1,250 The company's fixed costs are $771,400. An analysis of the sales mix identifies that rotomoulded kayaks make up 80% of the total units sold.

FINANCIAL ACCOUNTING
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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Current Designs manufactures two different types of kayaks: rotomoulded kayaks and composite kayaks. The following information is available for each product line. Sales price/unit Variable costs/unit Rotomoulded $880 520 Composite $1,840 1,250 The company's fixed costs are $771,400. An analysis of the sales mix identifies that rotomoulded kayaks make up 80% of the total s units sold.
Transcribed Image Text:Current Designs manufactures two different types of kayaks: rotomoulded kayaks and composite kayaks. The following information is available for each product line. Sales price/unit Variable costs/unit Rotomoulded $880 520 Composite $1,840 1,250 The company's fixed costs are $771,400. An analysis of the sales mix identifies that rotomoulded kayaks make up 80% of the total s units sold.
Assume that Current Designs will have sales of $2.76 million with two-thirds of the sales dollars in rotomoulded kayaks and one- third of the sales dollars in composite kayaks. Assuming $607,200 of fixed costs are allocated to the rotomoulded kayaks and $164,200 to the composite kayaks, prepare a CVP income statement for each product line. (Round answers to 0 decimal places, e.g. 5,275.) 수 Rotomoulded Kayaks. $ Composite Kayaks
Transcribed Image Text:Assume that Current Designs will have sales of $2.76 million with two-thirds of the sales dollars in rotomoulded kayaks and one- third of the sales dollars in composite kayaks. Assuming $607,200 of fixed costs are allocated to the rotomoulded kayaks and $164,200 to the composite kayaks, prepare a CVP income statement for each product line. (Round answers to 0 decimal places, e.g. 5,275.) 수 Rotomoulded Kayaks. $ Composite Kayaks
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