Sales Mix and Break-Even AnalysisJordan Company has fixed costs of $1,097,400. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products areprovided below.Product Selling Price Variable Cost per UnitContribution Margin per Unit$560$340220$220120340The sales mix for products Q and 2 is 35% and 65%, respectively. Determine the break-even point in units of Q and Z. If required, round your answers to the nearestwhole number.a. Product Qb. Product 2unitsunits

Breakeven point is that point of sales revenue at which business is only recovering its fixed costs…

Answered: Sales Mix and Break-Even Analysis…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $599,400. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $460 $280 $180 ZZ 620 440 180 The sales mix for Products QQ and ZZ is 90% and 10%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product QQ units b. Product ZZ units
Information concerning a product produced by Ender Company appears here: Sales price per unit $ 174 Variable cost per unit $ 76 Total annual fixed manufacturing and operating costs $ 656,600 Required Determine the following: Contribution margin per unit. Number of units that Ender must sell to break even. Sales level in units that Ender must reach to earn a profit of $245,000. Determine the margin of safety in units, sales dollars, and as a percentage.
Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Ashton Company prepared the following projected income statement: Sales $88,000 Total variable cost 23,760 Contribution margin $64,240 Total fixed cost 43,800 Operating income $20,440 Required: 1. Calculate the contribution margin ratio. Note: Enter as a percent, rounded to the nearest whole number. fill in the blank 1 % 2. Calculate the variable cost ratio. Note: Enter as a percent, rounded to the nearest whole number.fill in the blank 2 % 3. Calculate the break-even sales revenue for Ashton. Note: Round your answer to the nearest dollar. $fill in the blank 3 4. How could Ashton increase projected operating income without increasing the total sales revenue? Decrease the contribution margin ratio
Thornton Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $44. 12 Variable costs Manufacturing Selling Fixed costs Manufacturing Selling and administrative 17 per unit 6 per unit $152,000 per year $102,100 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit of $178,500. c. Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 21,400 units, how much could it pay in salaries for salespeople and still have a profit of $178,500? (Hint Use the equation method.) a. Break-even point in units Break-even point in dollars b Required sales in units Required sales in dollars C Fixed cost of salaries
Steven Company has fixed costs of $267,472. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Y Variable Cost per Unit $468 334 Product Selling Price per Unit X $1,248 624 The sales mix for Products X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y. Round answers to the nearest whole number. units of X units of Y Contribution Margin per Unit $780 290
Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $567,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $500 $340 $160 zZ 280 160 120 The sales mix for Products QQ and ZZ is 50% and 50%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product QQ units b. Product ZZ units
Contribution Margin Sally Company sells 36,000 units at $11 per unit. Variable costs are $7.70 per unit, and fixed costs are $44,000. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) % b. Unit contribution margin (Round to the nearest cent.) per unit c. Income from operations
Lindstrom Company produces two fountain pen models. Information about its products follows: Product A Product B Sales revenue Less: Variable costs Contribution margin Total units sold Lindstrom's fixed costs total $86,500. Required: $ 76,600 41,400 $ 46,000 5,000 $ 123,400 52,800 $ 91,000 5,000 1. Determine Lindstrom's weighted-average unit contribution margin and weighted-average contribution margin ratio. 2. Calculate Lindstrom's break-even point in units and in sales revenue. 3. Calculate the number of units that Lindstrom must sell to earn a $150,000 profit. 4. Calculate Lindstrom's margin of safety (in units and sales dollars) and margin of safety as a percentage of sales based on the sales data provided in the table above. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the number of units that Lindstrom must sell to earn a $150,000 profit. Note: Do not round your intermediate calculations. Round your answer…
Sales Mix and Break-Even Analysis Quality Containers Industries Inc. has fixed costs of $368,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit AA $125 $85 $40 BB 90 40 50 The sales mix for Products AA and BB is 40% and 60%, respectively. Determine the break-even point in units of AA and BB. a. Product AA units b. Product BB units
Question Content Area Sales Mix and Break-Even Analysis Olmstead Company has fixed costs of $2,170,920. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $700 $380 $320 ZZ 940 760 180 The sales mix for Products QQ and ZZ is 35% and 65%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product QQ fill in the blank 1 unitsb. Product ZZ fill in the blank 2 units
Contribution Margin Molly Company sells 32,000 units at $39 per unit. Variable costs are $29.25 per unit, and fixed costs are $174,700. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income. a. Contribution margin ratio (Enter as a whole number.) b. Unit contribution margin (Round to the nearest cent.) $4 per unit c. Operating income
Oriole Company has a unit selling price of $630, variable costs per unit of $410, and fixed costs of $199,980.Compute the break-even point in units using (a) the mathematical equation and (b) unit contribution margin. (a) Mathematical Equation (b) Unit contribution margin Break-even point units units

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