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:Product Sales Priceper UnitVariable Costper UnitModel 101$280 $180 Model 201345 220 Model 301395 250 The current product mix is 4:3:2. The three models share total fixed costs of $532,500.A. Calculate the sales price per composite unit.Sales price ? per composite unitB. What is the contribution margin per composite unit?Contribution margin ? per composite unitC. Calculate Manatoah’s break-even point in both dollars and units.Break-even point in dollars ?Break-even point in units ? unitD. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0".Income StatementSales 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 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 modelsare as follows:Sales Price Variable CostProductper Unitper UnitModel 101$280$180Model 201345220Model 301395250The current product mix is 4:3:2. The three models share total fixed costs of $532,500.A. Calculate the sales price per composite unit.Sales price $2,945per composite unitB. What is the contribution margin per composite unit?Contribution margin $1,065 V per composite unitC. Calculate Manatoah's break-even point in both dollars and units.Break-even point in dollars $Break-even point in unitsunits D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0".Income StatementSalesModel 101Model 201Model 301Total SalesVariable CostsModel 101Model 201Model 301Total Variable Costs $Contribution Margin $Fixed CostsNet Income

Product Sales Priceper Unit Variable Costper Unit Sales Mix Model 101 $280 $180 4 Model 201…

Answered: Manatoah Manufacturing produces 3…

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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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:

Product	Sales Price per Unit	Variable Cost per Unit
Model 101	$280	$180
Model 201	345	220
Model 301	395	250

The current product mix is 4:3:2. The three models share total fixed costs of $532,500.

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 ? unit

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

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
Product
per Unit
per Unit
Model 101
$280
$180
Model 201
345
220
Model 301
395
250
The current product mix is 4:3:2. The three models share total fixed costs of $532,500.
A. Calculate the sales price per composite unit.
Sales price $
2,945
per composite unit
B. What is the contribution margin per composite unit?
Contribution margin $
1,065 V 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
units

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

Expert Solution

Step 1

Product	Sales Price per Unit	Variable Cost per Unit	Sales Mix
Model 101	$280	$180	4
Model 201	345	220	3
Model 301	395	250	2

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