Rooney Corporation sells products for $38 each that have variable costs of $17 per unit. Rooney's annual fixed cost is $493,500. Required Use the per-unit contribution margin approach to determine the break-even point in units and dollars. Break-even point in units Break-even point in dollars
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- Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.The profit function for two products is: Profit3x12+42x13x22+48x2+700, where x1 represents units of production of product 1, and x2 represents units of production of product 2. Producing one unit of product 1 requires 4 labor-hours, and producing one unit of product 2 requires 6 labor-hours. Currently, 24 labor-hours are available. The cost of labor-hours is already factored into the profit function, but it is possible to schedule overtime at a premium of 5 per hour. a. Formulate an optimization problem that can be used to find the optimal production quantity of products 1 and 2 and the optimal number of overtime hours to schedule. b. Solve the optimization model you formulated in part (a). How much should be produced and how many overtime hours should be scheduled?
- Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Their sales mix is reflected in the ratio 7:3:2. If annual fixed costs shared by the three products are $196,200, how many units of each product will need to be sold in order for Salvador to break even?Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows: Their sales mix s reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $25,000 per year. What are total variable costs for Morris with their current product mix? Calculate the number of units of each product that will need to be sold in order for Morris to break even. What is their break-even point in sales dollars? Using an income statement format, prove that this is the break-even point.S Munoz Corporation sells products for $44 each that have variable costs of $19 per unit. Munoz's annual fixed cost is $560,000. Required Use the per-unit contribution margin approach to determine the break-even point in units and dollars. Break-even point in units Break-even point in dollars M
- Fanning Corporation sells products for $43 each that have variable costs of $14 per unit. Fanning's annual fixed cost is $638,00. Required Use the per-unit contribution margin approach to determine the break-even point in units and dollars. Break-even point in units Break-even point in dollarsCampbell Corporation sells products for $31 each that have variable costs of $18 per unit. Campbell's annual fixed cost is $295,100. Required Use the per-unit contribution margin approach to determine the break-even point in units and dollars.Munoz Corporation sells products for $28 each that have variable costs of $15 per unit. Munoz’s annual fixed cost is $296,400. Use the per-unit contribution margin approach to determine the break-even point in units and dollars.
- Based on the below examples (1&2), how can I figure out which contribution margin is needed to calculate the required Break-even? Between (Contribution Margin Per Unit) or (Contribution Margin Ratio). Example (1) (Why we didn't take CM/unit, but instead, CMR is calculated?) Northern Pacific Fixtures Corporation sells a single product for $28 per unit. If variable expenses are 65% of sales and fixed expenses total $9,800, the break-even point is? Example (2) (this one I know how to calculate). Mishoe Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Sales (1,000 units)...................... $50,000 Variable expenses...................... 32,500 Contribution margin..................... 17,500 Fixed expenses.......................... 12,250 Net operating income.................. $5,250 The break-even point in unit sales is closest…A company reports the information below for the single product it produces and sells. Sales price per unit Variable costs per unit Total fixed costs (1) Compute contribution margin per unit. $95 $38 $ 193,800 Contribution margin (2) Compute the break-even point in units. Numerator 1 per unit per unit per unit Denominator (3) Compute income in dollars if 3,700 units are sold. X Break Even Units = Break even units Fixed costs IncomeSBD Phone Company sells its waterproof phone case for $98 per unit. Fixed costs total $182,000, and variable costs are $44 per unit. (1) Determine the contribution margin ratio. per unit Contribution margin Contribution Margin Ratio Choose Numerator: Choose Denominator: Contribution Margin Ratio Contribution margin ratio (2) Determine the break-even point in dollars. Choose Numerator: Choose Denominator: Break-Even Point in Dollars Break-even point in dollars