Sales mix and break-even salesRosenberg Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $1,023,000, and the sales mix is 30% bats and 70% gloves. Theunit selling price and the unit variable cost for each product are as follows:ProductsBatsGlovesUnit Selling Price$80200Unit Variable Cost$60.120a. Compute the break-even sales (units) for the overall company's mix of product, M.unitsb. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point?Baseball batsBaseball glovesunitsunits

Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

Answered: Rosenberg Sports Inc. manufactures and…

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

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: Morris Industries data Product Sales Price per Unit Variable Cost per Unit AA $42 $34 BB 64 38 CC 81 47 Their sales mix is reflected as a ratio of 10:1:2. Annual fixed costs shared by the three products are $330,092 per year. What is their break-even point in sales dollars? Do not round until submitting your final answer. Round to the whole dollar, no decimals.
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: Product Sales Priceper Unit Variable Costper Unit AA $45 $30 BB 35 10 CC 35 5 Their sales mix is reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $189,000 per year. A. What are total variable costs for Morris with their current product mix? Total variable costs $fill in the blank b16d34fd6fb7fb3_1 B. Calculate the number of units of each product that will need to be sold in order for Morris to break even. Number ofUnits per Product AA fill in the blank BB fill in the blank CC fill in the blank C. What is their break-even point in sales dollars? Break-even point in sales $fill in the blank
Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $251,600, and the sales mix is 40% bats and 60% gloves The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $50 $40 Gloves 130 80 a. Compute the break-even sales (units) for the overall enterprise product, E. units b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point? Baseball bats units Baseball gloves units
ABC Company manufactures and sells three products: Products A, B, and C. The following data has been provided by the company: A ($) B ($) C (S) Selling Price 100 120 50 Variable Cost Per Unit 60 90 40 Forecasted sales are the following: Product A = 200 units; Product B =400 units; and Product C = 1,000 units. The company incurred $120,000 total fixed costs. Required: Weighted average contribution margin per unit Total breakeven sales units Breakeven sales units of Product A Breakeven sales units of Product B Breakeven sales units of Product C Breakeven sales dollars of Product A Breakeven sales dollars of Product B Breakeven sales dollars of Product C Sales mix of Product A, to Product B, to Product C Breakeven packages
The following information is available for Division X of Meisels, Inc.: Fixed cost per unit (based on capacity) Variable cost per unit Capacity in units Selling price to outside customers $5.25 $32 24,000 $41 Division Y would like to purchase 6,000 units each year from Division X. Division X has enough excess capacity to handle all of Division Y's needs. Division Y now purchases from an outside supplier at a price of $39 and insists that it should be charged that same price by Division X. If Division X refuses to accept the $39 price for transfers to Division Y, what effect would this have on the total annual profit of Meisels, Inc.?
Krispies Ltd manufactures and sells three products which have the following revenue and costs per unit: Snap Crackle Pop R R Selling price per unit 15 20 12 Variable cost per unit 10 13 6 Fixed cost per unit Unit fixed costs are based on the following sales volumes: Snap -– 15 000 units Crackle – 12 000 units Pop – 30 000 units Required: Calculate the aggregate break-even units and sales for Krispies Ltd. Round to two decimals.
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: Sales Price Variable Cost per Unit Product per Unit $275 350 395 Model 101 Model 201 Model 301 The current product mix is 4:3:2. The three models share total fixed costs of $657,000. $180 215 240 A. Calculate the sales price per composite unit. Sales price $ B. What is the contribution margin per composite unit? Contribution margin $ per composite unit Break-even point in dollars $ Break-even point in units per composite unit. C. Calculate Manatoah's break-even point in both dollars and units. units
The following information relates to a. The following per-unit cost information relates to Product K of Magna Company, based on the maximum capacity of 40,000 units. Variable Manufacturing $ 30 Variable Selling 4 Fixed Manufacturing 12 Fixed Selling 7 Unit cost $ 53 Magna is expected to sell all of 40,000 units produced to its regular customers for a price of $80 per unit. Sonya has approached Magma to buy 10,000 units of Product K. If Magna sells to Sonya, variable selling costs will not be incurred. To Sonya, Magna has to charge at least per unit? Multiple Choice $80 $76 $26 $53 $30
RST Company produces a product that has a variable cost of $6 per unit. The company's fixed costs are $30,000. The product sells for $10 per unit. RST desires to earn a profit of $20,000. The sales level in units to achieve the desire profit is Show Transcribed Text n A company that sells multiple types of products has a selling price per composite unit of $150, variable cost per composite unit of $50 and total fixed costs of $25,000. The contribution margin per composite unit is S
Island Novelties, Incorporated, of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Hawaiian Fantasy Tahitian Joy Selling price per unit $ 12 $ 120 Variable expense per unit $9 $ 48 Number of units sold annually 36,000 5,400 Fixed expenses total $ 437,000 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both dollar and percent columns for each product and for the company as a whole. b. Compute the company's break - even point in dollar sales. Also, compute its margin of safety in dollars and its margin of safety percentage. 2. The company has developed a new product called Samoan Delight that sells for $45 each and that has variable expenses of $27 per unit. If the company can sell 12,000 units of Samoan Delight without incurring any additional fixed expenses: a. Prepare a revised contribution…
Pursuit Company produces two products: Bric and Brac. The following table summarizes the products' details and planned unit sales for the upcoming period: Bric : Sellingpriceperunit.............$25. Variablecostperunit $14. Planned unit sales volume . . . . . . 800,000 Brac: Sellingpriceperunit............. $30 Variablecostperunit $17. Planned unit sales volume. 400,000 Pursuit Company has total fixed costs of $ 10 million and faces a tax rate of 30% . (a)What is Pursuit Company's expected profit at the planned level of sales? (b)Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to break even? (c) Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to earn an after - tax income of $ 910,000?

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