**P10-10. Calculating Sales Mix, Break-Even Point in Units, and Break-Even Point in Dollars****LO4**Nutting Company sells three types of nuts: almonds, cashews, and walnuts. Ten thousand cans of nuts were sold in 2016, and the amount of walnuts sold were twice as much as the number of cans of cashews, whereas almond sales were one-half the amount of cashew sales. Fixed costs were $40,000, and the unit sales prices and unit variable costs were as follows:| Product | Unit Sales Price | Unit Variable Cost ||----------|------------------|--------------------|| Almonds | $8 | $4 || Cashews | $10 | $5 || Walnuts | $6 | $4 |**REQUIRED:**1. Compute the number of cans of each kind of nut sold.2. Compute the sales mix percentages.3. Compute the weighted-average contribution margin per unit.4. Compute the overall break-even unit sales.5. Compute the unit sales of almonds, cashews, and walnuts at the break-even point.6. Compute the break-even dollar sales of almonds, cashews, and walnuts. **Problem 10-10**### 1. Units in Sales Mix| Product | Mix | Cans Sold ||---------|-----|-----------|| Cashews | X | 2,857 || Walnuts | 2X | 5,714 || Almonds | .5X | 1,429 || **Total** | **3.5X** | **10,000** |### 2. Sales Mix Percentage| Product | Unit Sales | Sales Mix Percentage ||---------|------------|----------------------|| Almonds | 2,857 | 28.57% || Cashews | 5,714 | 57.14% || Walnuts | 1,429 | 14.29% || **Total** | **10,000** | **100.00%** |### 3. Weighted Average Unit Contribution Margin| Product | Units Sold | Unit Contribution | Total Contribution | Wt. Ave. Unit Contr. Margin ||---------|------------|-------------------|--------------------|-----------------------------|| Almonds | | | | || Cashews | | | | || Walnuts | | | | || **Total** | | | | |### 4. Break-even Sales Volume (units)\[ \text{Break-even sales volume (units)} = \frac{\text{Fixed cost}}{\text{unit cont. margin}} = \frac{}{} = \text{units} \]### 5 & 6. Break-Even Sales in Dollars| Product | Sales Mix Percentage | Break-Even Sales Units | Product Unit Sales Price | B/E Sales Dollars ||---------|----------------------|------------------------|--------------------------|-------------------|| Almonds | | | | || Cashews | | | | || Walnuts | | | | |**Explanation:**- **Tables 1 and 2** depict the sales mix in terms of units sold and their corresponding percentages for each product: Almonds, Cashews, and Walnuts.- **Table 3** is meant to capture the Weighted Average Unit Contribution Margin, where values for Unit Contribution and Total Contribution should be calculated for each product.- **Section 4

3. The weighted average contribution margin per unit is calculated by multiplying the unit…

Nutting Company sells three types of nuts: almonds, cashews, and walnuts. Ten thousand cans of nuts were sold in 2016, and the amount of walnuts sold were twice as much as the number of cans of cashews, whereas almond sales were one-half the amount of cashew sales. Fixed costs were $40,000, and the unit sales prices and unit variable costs were as follows: Product Unit Sales Price Unit Variable Cost Almonds Cashews 10 Walnuts. 6 REQUIRED: 1. Compute the number of cans of each kind of nut sold. 2. Compute the sales mix percentages. 3. Compute the weighted-average contribution margin per unit. 4. Compute the overall break-even unit sales.

Nutting Company sells three types of nuts: almonds, cashews, and walnuts. Ten thousand cans of nuts were sold in 2016, and the amount of walnuts sold were twice as much as the number of cans of cashews, whereas almond sales were one-half the amount of cashew sales. Fixed costs were $40,000, and the unit sales prices and unit variable costs were as follows: Product Unit Sales Price Unit Variable Cost Almonds Cashews 10 Walnuts. 6 REQUIRED: 1. Compute the number of cans of each kind of nut sold. 2. Compute the sales mix percentages. 3. Compute the weighted-average contribution margin per unit. 4. Compute the overall break-even unit 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

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
Giddings Company manufactures and sells a single product, Product G. The product sells for $60 per unit and has a contribution margin ratio of 40 percent. The company's monthly fixed expenses are $28,800. If the selling price is reduced by 5%, variable costs per unit reduced by $1.00, and fixed costs increased to a total of $40,750, how many units would need to be sold to earn operating income equal to 10% of sales revenue? (Ignore income taxes.)
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
Business Solutions sells upscale modular desk units (60% of sales) and office chairs (40% of sales). Selling prices are $1,340 per desk unit and $590 per chair. Variable costs are $805 per desk unit and $295 per chair. Fixed costs are $171,210.Required:1. Compute the weighted-average contribution margin.2. Compute the break-even point in units.3. Compute the number of units of each product that would be sold at the break-even point.
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?
ABC Corporation sells its product for $195.70 per unit. In 2015 the company had total sales in units of 6,000. The total costs were the following: Variable cost of sales $457,800 Fixed cost of sales 100,000 Variable selling & administrative costs 108,500 Fixed selling & administrative costs 512,400 What is the best estimate of the total contribution margin?
Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $554,200, and the sales mix is 40% bats and 60% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats 50 40 Gloves 130 80 a. Compute the break-even sales (units) for the overall enterprise product, E. units b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point? Baseball bats units Baseball gloves units
Jaybird Company operates in a highly competitive market where the market price for its product is $145 per unit. Jaybird desires a 30% profit per unit. Jaybird expects to sell 5,000 units. Additional information is as follows: Variable Costs per Unit Fixed Costs (total) Direct materials S 24 Overhead $ 45,000 Direct labor 25 General and administrative 18,000 Overhead 23 General and administrative 29 To achieve the target cost per unit, Jaybird must reduce total expenses by how much? Multiple Choice $ 62,000 $51,000 $70, 500 $67,500 $60, 500
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
Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $251,600, and the sales mix is 40% bats and 60% gloves The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $50 $40 Gloves 130 80 a. Compute the break-even sales (units) for the overall enterprise product, E. units b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point? Baseball bats units Baseball gloves units
Fresh Co. is a company that produces fruit juices. Variable Manufacturing Costs of one package of juice = $0.6, Variable Marketing and Administrative Cost = $0.4, Fixed Costs = $12,000, Sales Price per unit is $4. Which of the following is Fresh Co.’s Target Volume (in Sales dollars)? a) $12,000 b) $13,320 c)$16,000 d) $14,120
H&H Bagels sells bagels in packages of six bagels. In April 2020, H&H sold 15,000 packages with a unit price of $8.80 each. H&H had $45,895 of fixed costs and calculated its breakeven volume at 6,850 packages for the month of April. What were H&H’s variable costs per unit and how much did H&H incur in total variable costs in April