! Required information Problem 18-6A (Algo) Break-even analysis LO P2 [The following information applies to the questions displayed below.] Praveen Company manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding that has not been as profitable as planned. Because Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year's plans call for a $170 selling price per unit. Its fixed costs for the year are expected to be $214,200. Variable costs for the year are expected to be $119 per unit. Problem 18-6A (Algo) Part 1 1. Estimate Product XT's break-even point in terms of sales units and sales dollars. (Do not round intermediate calculations.) Contribution Margin Contribution margin Contribution Margin ratio Numerator: I 1 per unit Denominator: 1 1(a) Estimate Product XT's break-even point in terms of sales units. (1 unit = 100 yards) Numerator: Denominator: I I 1(b) Estimate Product XT's break-even point in terms of sales dollars. Numerator: Denominator: = Contribution margin ratio = = Break-even units Break-even dollars
! Required information Problem 18-6A (Algo) Break-even analysis LO P2 [The following information applies to the questions displayed below.] Praveen Company manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding that has not been as profitable as planned. Because Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year's plans call for a $170 selling price per unit. Its fixed costs for the year are expected to be $214,200. Variable costs for the year are expected to be $119 per unit. Problem 18-6A (Algo) Part 1 1. Estimate Product XT's break-even point in terms of sales units and sales dollars. (Do not round intermediate calculations.) Contribution Margin Contribution margin Contribution Margin ratio Numerator: I 1 per unit Denominator: 1 1(a) Estimate Product XT's break-even point in terms of sales units. (1 unit = 100 yards) Numerator: Denominator: I I 1(b) Estimate Product XT's break-even point in terms of sales dollars. Numerator: Denominator: = Contribution margin ratio = = Break-even units Break-even dollars
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
Problem 18-6A (Algo) Break-even analysis LO P2
[The following information applies to the questions displayed below.]
Praveen Company manufactures and markets a number of rope products. Management is considering
the future of Product XT, a special rope for hang gliding that has not been as profitable as planned.
Because Product XT is manufactured and marketed independently of the other products, its total costs
can be precisely measured. Next year's plans call for a $170 selling price per unit. Its fixed costs for the
year are expected to be $214,200. Variable costs for the year are expected to be $119 per unit.
Problem 18-6A (Algo) Part 1
1. Estimate Product XT's break-even point in terms of sales units and sales dollars. (Do not round intermediate
calculations.)
Contribution Margin
Contribution margin
Contribution Margin ratio
Numerator:
1
1
per unit
Denominator:
1
1(b) Estimate Product XT's break-even point in terms of sales dollars.
Numerator:
Denominator:
=
1(a) Estimate Product XT's break-even point in terms of sales units. (1 unit = 100 yards)
Numerator:
Denominator:
1
1
=
Contribution margin ratio
=
Break-even units
Break-even dollars](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F378d1a2b-4d55-4a40-9162-2199e0820ba7%2F30897464-8007-485e-80c9-c200df92a08a%2Fuz3i7v_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
Problem 18-6A (Algo) Break-even analysis LO P2
[The following information applies to the questions displayed below.]
Praveen Company manufactures and markets a number of rope products. Management is considering
the future of Product XT, a special rope for hang gliding that has not been as profitable as planned.
Because Product XT is manufactured and marketed independently of the other products, its total costs
can be precisely measured. Next year's plans call for a $170 selling price per unit. Its fixed costs for the
year are expected to be $214,200. Variable costs for the year are expected to be $119 per unit.
Problem 18-6A (Algo) Part 1
1. Estimate Product XT's break-even point in terms of sales units and sales dollars. (Do not round intermediate
calculations.)
Contribution Margin
Contribution margin
Contribution Margin ratio
Numerator:
1
1
per unit
Denominator:
1
1(b) Estimate Product XT's break-even point in terms of sales dollars.
Numerator:
Denominator:
=
1(a) Estimate Product XT's break-even point in terms of sales units. (1 unit = 100 yards)
Numerator:
Denominator:
1
1
=
Contribution margin ratio
=
Break-even units
Break-even dollars
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