Sales mix and break-even salesData related to the expected sales of laptops and tablets for Tech Products Inc. for the current year, which istypical of recent years, are as follows:Products Unit Selling Price Unit Variable Cost$1,600$800350850The estimated fixed costs for the current year are $2,498,600.LaptopsTabletsRequired:unitsunitsSales Mix1. Determine the estimated units of sales of the overall company product, M, necessary to reach the break-evenpoint for the current year.units40%2. Based on the break-even sales (units) in part (1), determine the unit sales of both laptops and tablets for thecurrent year.LaptopsTabletsThe break-even point is60%3. Assume that the sales mix was 50% laptops and 50% tablets. Compare the break-even point with that in part(1). Why is it so different?unitstoward the product with the higherin this scenario than in part (1) because the sales mix isof product.

The break-even point is the point at which total cost and total revenue are equal, meaning there is…

Answered: Sales mix and break-even sales Data…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Break-Even Sales and Cost-Volume-Profit Chart For the coming year, Cleves Company anticipates a unit selling price of $92, a unit variable cost of $46, and fixed costs of $299,000. Required: 1. Compute the anticipated break-even sales (units). units 2. Compute the sales (units) required to realize a target profit of $138,000. units 3. Construct a cost-volume-profit chart on paper, assuming maximum sales of 13,000 units within the relevant range. From your chart, indicate whether each of the following sales levels would produce a profit, a loss, or break-even. $837,200 Profit $745,200 Profit $598,000 Break-even $450,800 Loss Loss $358,800 4. Determine the probable operating income (loss) if sales total 10,400 units. If required, use the minus sign to indicate a loss. Income
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Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Per Unit $ 70 49 $ 21 Fixed expenses are $74,000 per month and the company is selling 4,400 units per month. Req 2A 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $4 per unit and increase unit sales by 25%. 2-b. Should the higher-quality components be used? Req 2B Percent of Sales Complete this question by entering your answers in the tabs below. 100% 70 30% by Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher- quality components that increase the variable expense by $4 per unit and increase unit sales by 25%. Net operating income
Break-even sales and cost-volume-profit chart For the coming year, Cleves Company anticipates a unit selling price of $98, a unit variable cost of $49, and fixed costs of $416,500. Required: 1. Compute the anticipated break-even sales (units). 416,500 units 2. Compute the sales (units) required to realize a target profit of $171,500. units 3. Construct a cost-volume-profit chart on paper, assuming maximum sales of 17,000 units within the relevant range. From your chart, indicate whether each of the following sales levels would produce a profit, a loss, or break-even. $1,166,200 $1,038,800 $833,000 $627,200 $499,800 Determine the probable operating income (loss) if sales total 13,600 units. If required, use the minus sign to indicate a loss.
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Break-Even Sales and Sales to Realize a Target Profit For the current year ending October 31, Papadakis Company expects fixed costs of $400,000, a unit variable cost of $52, and a unit selling price $77. a. Compute the anticipated break-even sales (units). units b. Compute the sales (units) required to realize a target profit of $92,500. units
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v.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Lo... Break-Even Sales and Sales to Realize a Target Profit For the current year ending October 31, Papadakis Company expects fixed costs of $422,400, a unit variable cost of $46, and a unit selling price of $68. a. Compute the anticipated break-even sales (units). units. b. Compute the sales (units) required to realize a target profit of $96,800. units Check My Work Previous 6 Next Oct 26 6:18
Assume the following information: Selling price Variable expense ratio Fixed expenses Unit sales Multiple Choice O O How many units need to be sold to achieve a target profit of $16,900? 4,150 units 1,019 units 2,817 units Amount 6,220 units $30 80% $ 8,000 per month 3,400 per month
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