DEF Company distributes two products, X and Y. Monthly sales for X are $150,000. Monthly sales for Y are $250,000. CM ratio for X is 70%. CM ratio for Y is 40%. Fixed expenses are $153,750 per month. Required: A) Prepare a contribution format income statement for the company as a whole. Calculate percentages to two decimal places. B) What is the company's breakeven point in dollar sales based on the current sales mix? C) What are the dollar sales of X and Y at the breakeven point you calculated in (B)?
DEF Company distributes two products, X and Y. Monthly sales for X are $150,000. Monthly sales for Y are $250,000. CM ratio for X is 70%. CM ratio for Y is 40%. Fixed expenses are $153,750 per month. Required: A) Prepare a contribution format income statement for the company as a whole. Calculate percentages to two decimal places. B) What is the company's breakeven point in dollar sales based on the current sales mix? C) What are the dollar sales of X and Y at the breakeven point you calculated in (B)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
i need full details solution with explanation......
![DEF Company distributes two products, X and Y.
Monthly sales for X are $150,000.
Monthly sales for Y are $250,000.
CM ratio for X is 70%.
CM ratio for Y is 40%.
Fixed expenses are $153,750 per month.
Required:
A) Prepare a contribution format income statement for the company as a whole. Calculate percentages to two decimal
places.
B) What is the company's breakeven point in dollar sales based on the current sales mix?
C) What are the dollar sales of X and Y at the breakeven point you calculated in (B)?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F81567bf2-9dae-4ea4-9f5b-0c56c7038b22%2Fbf6aa062-62c0-4cfe-827c-6a94247a49da%2F658srkv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:DEF Company distributes two products, X and Y.
Monthly sales for X are $150,000.
Monthly sales for Y are $250,000.
CM ratio for X is 70%.
CM ratio for Y is 40%.
Fixed expenses are $153,750 per month.
Required:
A) Prepare a contribution format income statement for the company as a whole. Calculate percentages to two decimal
places.
B) What is the company's breakeven point in dollar sales based on the current sales mix?
C) What are the dollar sales of X and Y at the breakeven point you calculated in (B)?
AI-Generated Solution
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education