Exercise 5-22 (Algo) CVP analysis with two products LO P3Handy Home sells windows (70% of sales) and doors (30% of sales). The selling price of each window is $230 and of each door is$560. The variable cost of each window is $140 and of each door is $380. Fixed costs are $596,700.(1) Compute the weighted-average contribution margin.Weighted-average contribution margin(2) Compute the break-even point in units using the weighted-average contribution margin.Numerator:1Denominator:(3) Compute the number of units of each product that will be sold at the break-even point.WindowsDoorsunitsunits==Break Even UnitsBreak Even Units

calculation of contribution marginwindows ($)doors ($)sale price per unit230560less : variable cost…

Answered: Handy Home sells windows (70% of sales)…

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

A jeans maker is designing a new line of jeans called Slams. Slams will sell for $315 per unit and cost $214.20 per unit in variable costs to make. Fixed costs total $66,000. (Round your answers to 2 decimal places.) 1. Compute the contribution margin per unit. Contribution margin 2. Compute the contribution margin ratio. Numerator: Denominator: 3. Compute Income if 6,200 units are produced and sold Income Contribution Margin Ratio Contribution margin ratio 0
Smelly Feet Co. produces sports socks. The company has fixed costs of $157,000 and variable costs of $0.80. Each package sells for $2.50.(Round your answers to two decimal places when needed and use rounded answers for all future calculations).1. Compute the contribution margin per package and the contribution margin ratio. 2. Find the break-even point in units and in dollars using the contribution margin approach. (Reminder to write answer in whole units).
Viva sells its waterproof phone case for $124 per unit. Fixed costs total $247,000, and variable costs are $37 per unit. (1) Determine the contribution margin ratio. Contribution margin Contribution Margin Ratio Numerator: (2) Determine the break-even point in dollars. Numerator: 1 1 1 1 per unit Denominator: Denominator: = Contribution Margin Ratio Contribution margin ratio = = Break-Even Point in Dollars Break-even point in dollars 0 0
Gladstorm Enterprises sells a product for $50 per unit. The variable cost is $32 per unit, while fixed costs are $9,504. Determine the break-even point in sales units. Round answer to the nearest whole number. units Determine the break-even point in sales units if the selling price was increased to $65 per unit. Round answer to the nearest whole number. units
A company's product sells at $12.26 per unit and has a $5.39 per unit variable cost. The company's total fixed costs are $96,700. The contribution margin per unit is:
A jeans maker is designing a new line of jeans called Slams. Slams will sell for $205 per unit and cost $164 per unit in variable costs to make. Fixed costs total $60,000. 1. Compute the contribution margin per unit. Contribution margin 2. Compute the contribution margin ratio. Numerator: I Denominator: 1 3. Compute income if 5,000 units are produced and sold. Income Contribution Margin Ratio = Contribution margin ratio 0
Manji
Handy Home sells windows (60% of sales) and doors (40% of sales). The selling price of each window is $220 and of each door is $540. The variable cost of each window is $135 and of each door is $370. Fixed costs are $600,950. S (1) Compute the weighted-average contribution margin. Sales mix Windows Doors Contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin. Numerator: Denominator: 7 Windows Doors Total Weighted-average contribution margin (3) Compute the number of units of each product that will be sold at the break-even point. Sales mix Number of units to break even. = Total per unit Break Even Units Break Even Units Unit sales at break-even point
Best Windows is a small company that installs windows. Its cost structure is as follows: Selling price from each window installation Variable cost of each window installation Annual fixed costs $ $ $ 160,000 Use (a) the equation method and (b) the contribution method to calculate operating income if Best installs 4,000 windows. Use (a) the Equation method to calculate operating income if Best installs 4,000 windows. Begin by determining the formula to calculate the operating income using the equation method. Then, calculate the operating income. (Abbreviation used: FC = Fixed costs, SP = Selling price, VCU = Variable cost per unit, Q = Quantity of units sold.) X X )-( )-( X X 700 600 X = Operating income = Next, use (b) the contribution method to calculate operating income if Best installs 4,000 windows. Begin by determining the formula to calculate the operating income using the contribution method. Then, calculate the operating income. = Operating income
A jeans maker is designing a new line of jeans called Slims. The jeans will sell for $285 per pair and cost $176.70 per pair in variable costs to make. (Round your answers to 2 decimal places.) (1) Compute the contribution margin per pair. Contribution margin (2) Compute the contribution margin ratio. Choose Numerator: Choose Denominator: Contribution Margin Ratio Contribution margin ratio

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