Homework Help is Here – Start Your Trial Now!
Business
Accounting
Part 3b Contribution Margin Ratio and Part 4: Margin of Safely 3b. What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. (Note: Round the contribution margin ratio to the nearest whole percent; round the break-even sales revenue to the nearest dollar.) Overall contribution margin ratio Overall break-even sales revenue 4. Compute the margin of safety for the coming year in sales dollars.

Part 3b Contribution Margin Ratio and Part 4: Margin of Safely 3b. What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. (Note: Round the contribution margin ratio to the nearest whole percent; round the break-even sales revenue to the nearest dollar.) Overall contribution margin ratio Overall break-even sales revenue 4. Compute the margin of safety for the coming year in sales dollars.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDS and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 DVDs and 4,500 equipment sets. Information on the two products is as follows: Price DVDs Equipment Sets $8 $25 Variable cost per unit Total fixed cost is $76,250. 15 Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale to health clubs. The company estimates that 9,000 mats can be sold at price of $17 and a variable cost per unit of $11. Total fixed cost must be increased by $25,410 (making total fixed cost $101,660). Assume that anticipated sales of the other products, as well as their prices and variable costs, remain the same. Part 1: Sales Mix Instructions and Part 2: Break-Even 1. What is the sales mix of DVDs, equipment sets, and yoga mats? 3:112 2. Compute the break-even quantity of each product. Break-even DVDS Break-even equipment sets units units units Break-even yoga mats Part 3a: Income Statement 3a. Prepare an income statement for Cherry Blossom Products for the coming year. Cherry Blossom Products Inc. Income Statement For the Coming Year Part 3b: Contribution Margin Ratio and Part 4: Margin of Safety 3b. What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. (Note: Round the contribution margin ratio to the nearest whole percent; round the break-even sales revenue to the nearest dollar.) Overall contribution margin ratio Overall break-even sales revenue 4. Compute the margin of safety for the coming year in sales dollars.
Transcribed Image Text:Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDS and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 DVDs and 4,500 equipment sets. Information on the two products is as follows: Price DVDs Equipment Sets $8 $25 Variable cost per unit Total fixed cost is $76,250. 15 Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale to health clubs. The company estimates that 9,000 mats can be sold at price of $17 and a variable cost per unit of $11. Total fixed cost must be increased by $25,410 (making total fixed cost $101,660). Assume that anticipated sales of the other products, as well as their prices and variable costs, remain the same. Part 1: Sales Mix Instructions and Part 2: Break-Even 1. What is the sales mix of DVDs, equipment sets, and yoga mats? 3:112 2. Compute the break-even quantity of each product. Break-even DVDS Break-even equipment sets units units units Break-even yoga mats Part 3a: Income Statement 3a. Prepare an income statement for Cherry Blossom Products for the coming year. Cherry Blossom Products Inc. Income Statement For the Coming Year Part 3b: Contribution Margin Ratio and Part 4: Margin of Safety 3b. What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. (Note: Round the contribution margin ratio to the nearest whole percent; round the break-even sales revenue to the nearest dollar.) Overall contribution margin ratio Overall break-even sales revenue 4. Compute the margin of safety for the coming year in sales dollars.
Expert Solution
steps

Step by step

Solved in 6 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS