Georgeland Cycles makes and sells two models of electric bicycles. The Commuter (a folding model) sells for $2,516.00 and the Tour-X(a fat-tire trail model) sells for $4,516.00. Unit variable costs for the Commuter are $1,766.00 and for the Tour-X $3,216.00. Annual fixedcosts at Georgeland are $635,600. The marketing manager estimates that the annual mix of sales is 30 percent Commuter model and70 percent Touring model.Required:a. How many of each model ebike must Georgeland Cycles sell every year to break even?b. How many of each model ebike must Georgeland Cycles sell every year to earn operating profits of $102,150 before taxes?Complete this question by entering your answers in the tabs below.Required A Required BHow many of each model ebike must Georgeland Cycles sell every year to break even?Tour-XCommuter Georgeland Cycles makes and sells two models of electric bicycles. The Commuter (a folding model) sells for $2,516.00 and the Tour-X(a fat-tire trail model) sells for $4,516.00. Unit variable costs for the Commuter are $1,766.00 and for the Tour-X $3,216.00. Annual fixedcosts at Georgeland are $635,600. The marketing manager estimates that the annual mix of sales is 30 percent Commuter model and70 percent Touring model.Required:a. How many of each model ebike must Georgeland Cycles sell every year to break even?b. How many of each model ebike must Georgeland Cycles sell every year to earn operating profits of $102,150 before taxes?Complete this question by entering your answers in the tabs below.Required A Required BHow many of each model ebike must Georgeland Cycles sell every year to earn operating profits of $102,150 before taxes?Number of ebikesCommuterTour-X< Required ARequired B >

Commuter Tour X Total Sales per unit $ 2,516 $ 4,516Less variable cost per unit $…

Answered: Georgeland Cycles makes and sells two…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Pierson Pet Products produces two models of dog beds: Basic and Custom. Price, cost and expected sales volume data for the two models are as follows: Basic $ 19.00 $ 12.00 36,000 Custom $ 54.00 $ 33.00 24,000 Selling price per bed Variable cost per bed Expected sales (beds) The total fixed costs for the company are $396,900. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the expected product mix applies regardless of total sales, compute the break-even volume. Note: Do not round Intermediate calculations. c. If the product sales mix were to change to three Basic beds for each Custom bed, what would be the new break-even volume? Note: Do not round intermediate calculations.
Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runners- Warm and Cozy. Current revenue, cost, and unit sales data for the two products appear below: Selling price per pair Variable expenses per pair Number of pairs sold monthly Warm $6.00 $ 1.50 Fixed expenses are $2,880 per month. Required: 1. Assuming the sales mix above, do the following: $ 3,000 units a. Prepare a contribution format income statement showing both dollars and percentage columns for each product and for the company as a whole. (Round percentage answers to 2 decimal places.) WARM HANDS Contribution Income Statement Warm 0 Cozy $9.00 $4.50 1,000 units % 0.00 $ Cozy 0 % 0.00 $ Total 0 0 % 0.00
Northwest Technology Inc. manufactures and sells two products, digital game players and computer tablets. The fixed costs are $936,000, and the sales mix is 70% game players and 30% computer tablets. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Game players $ 50 $30 Tablets 120 80 a. Compute the break-even sales (units) for the overall product, E.units b. How many units of each product, game players and tablets, would be sold at the break-even point? Digital game players units Computer tablets units
Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses are $20.00 per unit, and fixed expenses total $200,000 per year. Its operating results for last year were as follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales. 3. Assume this year's unit sales and total sales increase by 59,000 units and $2,360,000, respectively. If the fixed expenses do not change, how much will net operating income increase? $ 1,000,000 500,000 500,000 200,000 $ 300,000 4-a. What is the degree of operating leverage based on last year's sales? 4-b. Assume the president expects this year's unit sales to increase by 19%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the…
Nardin Outfitters has a capacity to produce 21,000 of their special arctic tents per year. The company is currently producing and selling 5,000 tents per year at a selling price of $1,800 per tent. The cost of producing and selling one tent follows: Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Total costs The company has received a special order for 2,300 tents at a price of $780 per tent from Chipman Outdoor Center. It will not have to pay any sales commission on the special order, so the variable selling and administrative costs would be only $63 per tent. The special order would have no effect on total fixed costs. The company has rejected the offer based on the following computations: Selling price per case Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Net profit (loss) per case Required: a. What is the…
Bonita Industries produces tinted SPF 100 moisturizer that it sells for $120 each. Each bottle costs $6 of variable costs to make. During the most recent quarter, 1100 bottles of moisturizer were manufactured and sold. Fixed costs for the quarter were $20 per unit for a total of $22000. What is the company's contribution margin ratio?
Talbot Industries manufactures two models of wireless headset: TI-12 and TI-28. Each product requires time on a single machine. The machine has a monthly capacity of 540 hours. Total market demand for the two products is limited to 2,000 units of TI-12 and 1,000 units of TI-28 monthly. Talbot is currently producing and selling 1,500 TI-12 models and 780 TI-28 models each month. Cost and machine-usage data for the two products are shown in the following spreadsheet, which analysts at Talbot use for production planning purposes: Price Less variable costs per unit Material Labor Overhead Contribution margin per unit Fixed costs Manufacturing Marketing and administrative Machine hours per unit Machine hours used Machine hours available Quantity produced Maximum demand Profit Required A Required B TI-12 Model TI-28 Model TI-12 $ 80 23 29 8 $ 20 units units 0.1
Kinnane's Fine Furniture manufactures two models: Standard and Premium. Weekly demand is estimated to be 100 units of the Standard Model and 72 units of the Premium Model. The following per unit data apply: Kinnane's Fine Furniture data Standard Premium Contribution margin per unit $24 Number of machine hours required 3 If there are 495 machine hours available per week, how many rockers of each model should Kinnane produce to maximize profits? 100 units of Standard and 39 units of Premium 45 units of Standard and 72 units of Premium 100 units of Standard and 72 units of Premium $30 5 83 units of Standard and 50 units of Premium
Crane Company manufactures dog food for distribution in Washington, Oregon, and California. A dog food distributor from Florida has approached Crane and offered to purchase 264000 pounds of dog food for $1.40 per pound. Crane can produce 2048000 pounds of dog food per year, and its results for last year are as follows: Sales (1844000 at $1.65) Variable costs Contribution margin Fixed costs Operating income $3042600 O $1392800 O $1336400 O $2084400 O $1270400 1106400 1936200 814000 $1122200 If Crane accepts the offer, it will only be able to sell 1784000 pounds of dog food at the regular price due to its capacity constraints. What will Crane's total operating income be next year if it accepts the offer?
Sandy Bank, Incorporated, makes one model of wooden canoe. Partial information is given below. Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $540 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 760 canoes for $540 each. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank's break-even point in units and in sales dollars. Sandy Bank sells its canoes for $540 each. 5. Suppose Sandy Bank wants to earn $76,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Sandy Bank sells its canoes for $540 each. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 This year Sandy Bank expects to sell 760 canoes for $540 each. Prepare a contribution margin income statement for the company. Note: Round your intermediate calculations to 2 decimal…
The Cool Watch company sells two products. The company's water-resistant model sells for $100, has a contribution margin of 35%, and generated sales of $100,000. The company's "basic timepiece" sells for $40, has a contribution margin of 40%, and generated sales of $80,000. Fixed expenses for the company as a whole were $50,000 and the product mix was constant. a) How many watches did the company sell? b) Compute the break-even point for the company in sales dollars. Round all calculations to two decimal places.

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS