**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

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