Drayton Windows plans to sell two different brands of windows-Chad and Musk-and budgets the following: (Click the icon to view the budgets.) Calculate the breakeven point for Drayton Windows in terms of (a) the number of units sold and (b) revenues. Begin by determining the sales mix. (The windows can only be sold in whole units. Enter the ratios as whole numbers.) A budgeted sales mix of 3,900 units of Chad Windows sold for every is a ratio of 3: 1. That is, we think of Drayton Windows selling a bundle of 1 unit(s) of Musk Windows. Next, calculate the contribution margin of the bundle. Number of Units of Chad Windows and Musk Windows in Each Bundle Chad Windows Musk Windows Total Contribution Margin per unit for Chad Windows and Musk Windows Data table Contribution Margin of the Bundle C Expected sales Revenues, $600 and $250 per unit Variable costs, $550 and $200 per unit Contribution margin, $50 and $50 per unit Fixed costs Operating income Chad Windows 3,900 $ 1,300 units of Musk Windows sold, $ 3 units of Chad Windows and Musk Windows 2,340,000 $ 2,145,000 195,000 $ Total 1,300 325,000 $2,665,000 260,000 2,405,000 65,000 5,200 260,000 160,000 $ 100,000 X Check answer

Drayton Windows plans to sell two different brands of windows-Chad and Musk-and budgets the following: (Click the icon to view the budgets.) Calculate the breakeven point for Drayton Windows in terms of (a) the number of units sold and (b) revenues. Begin by determining the sales mix. (The windows can only be sold in whole units. Enter the ratios as whole numbers.) A budgeted sales mix of 3,900 units of Chad Windows sold for every is a ratio of 3: 1. That is, we think of Drayton Windows selling a bundle of 1 unit(s) of Musk Windows. Next, calculate the contribution margin of the bundle. Number of Units of Chad Windows and Musk Windows in Each Bundle Chad Windows Musk Windows Total Contribution Margin per unit for Chad Windows and Musk Windows Data table Contribution Margin of the Bundle C Expected sales Revenues, $600 and $250 per unit Variable costs, $550 and $200 per unit Contribution margin, $50 and $50 per unit Fixed costs Operating income Chad Windows 3,900 $ 1,300 units of Musk Windows sold, $ 3 units of Chad Windows and Musk Windows 2,340,000 $ 2,145,000 195,000 $ Total 1,300 325,000 $2,665,000 260,000 2,405,000 65,000 5,200 260,000 160,000 $ 100,000 X Check answer

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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