Revenue mix, three products. The Mendez Company has three products, tote bags H, J, and K. The presidentplans to sell 200,000 units during the next period, consisting of 80,000 units of H, 100,000 units of J, and20,000 units of K. The products have unit contribution margins of $2, $3, and $6 respectively. The company'sfixed costs for the period are $406,000.REQUIRED1. Compute the budgeted operating income. Compute the breakeven point in units, assuming that the givenrevenue mix is maintained.2. Suppose 80,000 units of II, 80,000 units of J, and 40,000 units of K are sold. Compute the budgetedoperating income. Compute the new breakeven point in units if these relationships persist in the nextperiod.

Break even point :— It is the point of production where total cost is equal to total revenue. At…

Answered: Revenue mix, three products. The Mendez…

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

Sales mix, three products. The Kenosha Company has three product lines of beer mugs—A, B, and C—with contribution margins of $5, $4, and $3, respectively. The president foresees sales of 175,000 units in the coming period, consisting of 25,000 units of A, 100,000 units of B, and 50,000 units of C. The company’s fixed costs for the period are $351,000. Q. What would operating income be if the company sold 25,000 units of A, 75,000 units of B, and 75,000 units of C? What is the new breakeven point in units if these relationships persist in the next period?
Please provide answer in text (Without image)
The Konopka Company has three product lines of belts-A, B, and C-with contribution margins of $4, $3, and $2, respectively. The president foresees sales of 150,000 units in the coming period, consisting of 15,000 units of A, 75,000 units of B, and 60,000 units of C. The company's fixed costs for the period are $351,000. Read the requirements. Requirement 3. What would operating income be if 15,000 units of A, 60,000 units of B, and 75,000 units of C were sold? What is the new breakeven point in units if these relationships persist in the next period? Begin by completing the table below to calculate operating income. A B 15,000 60,000 $ 60,000 180,000 $ 75,000 150,000 Total 150,000 390,000 351,000 39,000 Units sold Contribution margin Fixed costs Operating income Now determine the new sales mix. For every 1 unit of A, 4 units of B are sold, and 5 units of C are sold. Now calculate the breakeven point in bundles for this requirement, then determine the breakeven point for each product…
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 20,000 Variable expenses 12,000 Contribution margin 8,000 Fixed expenses 6,000 Net operating income $ 2,000 Required: What is the break-even point in sales dollars?
Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Product Weedban $ 10.00 $ 3.00 $ 133,000 Greengrow $31.00 $11.00 $ 35,000 Last year the company produced and sold 41,500 units of Weedban and 24,500 units of Greengrow. Its annual common fixed expenses are $105,000. Required: Prepare a contribution format income statement segmented by product lines. Total Company Product Line Weedban Greengrow
Gadubhai
2. A company sells a single product at a price of $20 per unit. Variable expenses are$12 per unit. The company’s contribution format income statement for the mostrecent month follows:Total Per UnitSales (15,000 units) $300,000 $20Variable expenses 180,000 12Contribution margin 120,000 $8Fixed expenses 100,000Net operating income $20,000If the company sells 16,500 units next month, what should be the company’s totalcontribution margin? Show your calculations. Suggested approach: Total number of units sold × Unit CM **Pls help me im clear soultion with accurate answers pls thank u
Campbell company incurs annual fixed costs of $65,400 variable costs for Campbell's product are $32.00 per unit, and the sales price is $50.00 per unit. Campbell desires to earn an annual profit of $48,000. Required Use the per-unit contribution margin approach to determine the sale volume in units and dollars required to earn the desired profit. Sales in dollars Sales Volume in units
Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Weedban $9.00 $ 3.10 $ 133,000 Product Greengrow $34.00 $12.00 $ 36,000 Last year the company produced and sold 44,000 units of Weedban and 19,000 units of Greengrow. Its annual common fixed expenses are $97,000. Required: Prepare a contribution format income statement segmented by product lines. Total Company Product Line Weedban Greengrow
Please help me with show all calculation thanku
Sales mix, three products. The Kenosha Company has three product lines of beer mugs—A, B, and C—with contribution margins of $5, $4, and $3, respectively. The president foresees sales of 175,000 units in the coming period, consisting of 25,000 units of A, 100,000 units of B, and 50,000 units of C. The company’s fixed costs for the period are $351,000. Q. Comparing the breakeven points in requirements 1 and 3, is it always better for a company to choose the sales mix that yields the lower breakeven point? Explain.
Oslo Company prepared the following contribution format income statement based on a sales volume of 1, 000 units (the relevant range of production is 500 units to 1, 500 units): Sales S 24, 500 Variable expenses 13, 500 Contribution margin 11, 000 Fixed expenses 7, 700 Operating income $ 3, 300 7. If the variable cost per unit increases by $1.50, spending on advertising increases by S2, 000, and unit sales increase by 250 units, what would be the operating income? (Do not round intermediate calculations

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

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