follows: Sales Price Variable Cost per Unit per Unit $275 350 395 Product Model 101 Model 201 Model 301 The current product mix is 4:3:2. The three models share total fixed costs of $657,000. A. Calculate the sales price per composite unit. Sales price $ per composite unit B. What is the contribution margin per composite unit? Contribution margin per composite unit C. Calculate Manatoah's break-even point in both dollars and units. Break-even point in dollars Break-even point in units $180 215 240 units
follows: Sales Price Variable Cost per Unit per Unit $275 350 395 Product Model 101 Model 201 Model 301 The current product mix is 4:3:2. The three models share total fixed costs of $657,000. A. Calculate the sales price per composite unit. Sales price $ per composite unit B. What is the contribution margin per composite unit? Contribution margin per composite unit C. Calculate Manatoah's break-even point in both dollars and units. Break-even point in dollars Break-even point in units $180 215 240 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0".
Income Statement
Sales
Model 101
Model 201
Model 301
Total Sales
Variable Costs
Model 101
Model 201
Model 301
Total Variable Costs $
Contribution Margin $
Fixed Costs
$
Net Income
$
Transcribed Image Text:Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as
follows:
Sales Price Variable Cost
per Unit
Product per Unit
$275
350
395
Model 101
Model 201
Model 301
The current product mix is 4:3:2. The three models share total fixed costs of $657,000.
$180
215
240
A. Calculate the sales price per composite unit.
Sales price $
B. What is the contribution margin per composite unit?
Contribution margin $
per composite unit
Break-even point in dollars $
Break-even point in units
per composite unit.
C. Calculate Manatoah's break-even point in both dollars and units.
units
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