Linburgh Inc manufactures model airplanes and repair kits. The planes account for 80% of thesales mix, and the kits the remainder. The variable cost ratio for the planes is 85% and 70% forthe kits. Fixed costs are $99,000. Compute the breakeven point in sales dollars.O $825,000$550,000$1,222,222$293,333hp

Compute total contribution margin using sales mix for the two products as shown below:

Answered: Linburgh Inc manufactures model…

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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Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows. Unit Contribution Sales Mix Margin Lawnmowers 20 % $30 Weed-trimmers 50 % $23 Chainsaws 30 % $44 Yard Tools has fixed costs of $4,512,900. Compute the number of units of each product that Yard Tools must sell in order to break even under this product mix. Lawnmowers 32235 units Weed-trimmers 80588 units Chainsaws 48353 units
Chovanec Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 170 100% Variable expenses 68 40% Contribution margin $ 102 60% Fixed expenses are $521,000 per month. The company is currently selling 7,000 units per month. Management is considering using a new component that would increase the unit variable cost by $6. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 500 units. What should be the overall effect on the company's monthly net operating income of this change? Multiple Choice increase of $6,000 decrease of $6,000 decrease of $48,000 increase of $48,000
Vaughn Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of its three product lines is birthday candles 30%, standard tapered candles 55%, and large scented candles 15%. The contribution margin ratio of each candle type is shown below. Candle Type Contribution Margin Ratio Birthday 20% Standard tapered 30% Large scented 50% If the company’s fixed costs are $ 406,500 per year, what is the dollar amount of each type of candle that must be sold to break even? Birthday Standard tapered Large scented Total break-even point $ enter a dollar amount $ enter a dollar amount $ enter a dollar amount
Ashvin
The company would make an adjusting entry for the underapplied overhead by debiting cost of goods sold and- crediting hp
Crane Industries sells two electrical components with the following characteristics. Fixed costs for the company are $700,000 per year. XL-709 CD-918 $31 23 Sales price $17 Variable cost 12 Sales volume86,800 units217,000 units How many units of EACH product must Crane Industries sell in order to break even?
The Zin Company wants to achieve an operating income of $126.000, They currently sell 5,000 units at a price of $72 per unit with variable costs of $32 per unit fixed costs total $84, 000. In order to achieve their target operating income before taxes without increasing the selling price, the company will need to increase sales by $94,000 $84,000 600 units. 250 units
Crane Inc manufactures model airplanes and repair kits. The planes account for 80% of the sales mix, and the kits the remainder. The variable cost ratio for the planes is 85% and 70% for the kits. Fixed costs are $63000. Compute the breakeven point in sales dollars. A.$350,000B.$210,000C.$525,000D.$420,000
International Printer Machines (IPM) builds three computer printer models: Alpha, Beta, andGamma. Information for these three products is as follows:Alpha Beta Gamma TotalSelling price per unit $250 $400 $1 500Variable cost per unit $80 $200 $800Expected unit sales (annual) 12,000 6,000 2,000 20,000Sales mix 50 percent 40 percent 10 percent 100 percentTotal annual fixed costs are $5,000,000. Assume the sales mix remains the same at all levelsof sales.Required:a) Calculate the weighted average unit contribution margin, assuming a constant sales mix. b) How many units of each printer must be sold to break even? (3 marks)c) i) Explain what is margin of safety ii) Calculate in sales units the margin of safety for IPM, assuming projected sales are25,000 units?

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