Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows:ProductSales Priceper UnitVariable Costper UnitAA$55 $25 BB35 10 CC35 15 Their sales mix is reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $344,500 per year.A. What are total variable costs for Morris with their current product mix?Total variable costs B. Calculate the number of units of each product that will need to be sold in order for Morris to break even. Number ofUnits per ProductAA BB CC C. What is their break-even point in sales dollars?Break-even point in sales D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0".Income StatementSales Product AA Product BB Product CC Total Sales Variable Costs Product AA Product BB Product CC Total Variable Costs Contribution Margin Fixed Costs Net Income D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0".Income StatementSalesProduct AAProduct BBProduct CCTotal SalesVariable CostsProduct AAProduct BBProduct CCTotal Variable CostsContribution MarginFixed CostsAccounting numeric fieldNet Income Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows:Sales Price Variable CostProductper Unitper UnitAA$55$25BB3510СС3515Their sales mix is reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $344,500 per year.A. What are total variable costs for Morris with their current product mix?Total variable costs $B. Calculate the number of units of each product that will need to be sold in order for Morris to break even.Number ofUnits per ProductAABBССC. What is their break-even point in sales dollars?Break-even point in sales $

Given: Product Sales Priceper Unit Variable Costper Unit ContributionMarginPer Unit SalesMix AA…

Answered: Morris Industries manufactures and…

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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Question

Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows:

Product	Sales Price per Unit	Variable Cost per Unit
AA	$55	$25
BB	35	10
CC	35	15

Their sales mix is reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $344,500 per year.

A. What are total variable costs for Morris with their current product mix?

Total variable costs

B. Calculate the number of units of each product that will need to be sold in order for Morris to break even.

	Number of Units per Product
AA
BB
CC

C. What is their break-even point in sales dollars?

Break-even point in sales

D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0".

Income Statement
Sales
Product AA
Product BB
Product CC
Total Sales
Variable Costs
Product AA
Product BB
Product CC
Total Variable Costs
Contribution Margin
Fixed Costs
Net Income

Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows:
Sales Price Variable Cost
Product
per Unit
per Unit
AA
$55
$25
BB
35
10
СС
35
15
Their sales mix is reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $344,500 per year.
A. What are total variable costs for Morris with their current product mix?
Total variable costs $
B. Calculate the number of units of each product that will need to be sold in order for Morris to break even.
Number of
Units per Product
AA
BB
СС
C. What is their break-even point in sales dollars?
Break-even point in sales $

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