Sales Mix and Break-Even AnalysisHeyden Company has fixed costs of $399,970. The unit selling price, variable cost per unit, and contribution margin per unit for thecompany's two products followProduct Selling Price Variable Cost per UnitContribution Margin per Unit$100QQ$180$80240220zz20The sales mix for Products QQ and ZZ is 45% and 55%, respectively. Determine the break-even point in units of QQ and ZZ. Ifrequired, round your answers to the nearest whole number.a. Product QQunitsb. Product ZZunits

Break even sales is the dollar amount of revenue at which a business earns a profit of zero i.e. No…

Answered: Sales Mix and Break-Even Analysis…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5BE

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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.
Contribution Margin Ratio, Break-Even Sales, Operating Leverage Elgart Company produces plastic mailboxes. The projected income statement for the coming year follows: Required: 1. Compute the contribution margin ratio for the mailboxes. 2. How much revenue must Elgart earn in order to break even? 3. What is the effect on the contribution margin ratio if the unit selling price and unit variable cost each increase by 15%? 4. CONCEPTUAL CONNECTION Suppose that management has decided to give a 4% commission on all sales. The projected income statement does not reflect this commission. Recompute the contribution margin ratio, assuming that the commission will be paid. What effect does this have on the break-even point? 5. CONCEPTUAL CONNECTION If the commission is paid as described in Requirement 4, management expects sales revenues to increase by 80,000. How will this affect operating leverage? Is it a sound decision to implement the commission? Support your answer with appropriate computations.
Contribution margin Waite Company sells 250,000 units at 120 per unit. Variable costs are 78 per unit, and fixed costs are 8,175,000. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income.
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.
Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $392,700. 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 $400 $220 $180 ZZ 300 220 80 The sales mix for Products QQ and ZZ is 30% and 70%, respectively. Determine the break-even point in units of QQ and zZ. If required, round your answers to the nearest whole number. a. Product Q0 units b. Product ZZ units
Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $392,700. 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 $400 $220 $180 ZZ 300 220 80 The sales mix for Products QQ and ZZ is 30% and 70%, respectively. Determine the break-even point in units of QQ and Z. If required, round your answers to the nearest whole number. a. Product QQ units b. Product ZZ units く Previous Next
Sales Mix and Break-Even Analysis Michael Company has fixed costs of $814,900. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follo Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $570 $380 $190 ZZ 330 230 100 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 nearest whole number. a. Product QQ units b. Product ZZ units Previous Check My Work 2 more Check My Work uses remaining.
Sales Mix and Break-Even Analysis Jordan 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 are provided below. Product Selling Price Variable Cost per Unit Contribution Margin per Unit $560 $340 220 $220 120 340 The 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 nearest whole number. a. Product Q b. Product 2 units units
Sales Mix and Break-Even Analysis Michael Company has fixed costs of $514,080. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products follow: Product Model Selling Price Variable Cost per Unit Contribution Margin per Unit Yankee $260 $120 $140 Zoro 200 140 60 The sales mix for products Yankee and Zoro is 15% and 85%, respectively. Determine the break-even point in units of Yankee and Zoro. a. Product Model Yankee units b. Product Model Zoro units
Sales Mix and Break-Even Analysis Michael Company has fixed costs of $365,200. 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 $280 $120 $160 ZZ 160 140 20 The sales mix for Products QQ and ZZ is 45% and 55%, 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
Sales mix and break-even analysis Megan Company has fixed costs of $871,320. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Model Selling Price Variable Cost per Unit Contribution Margin per Unit Yankee Zoro $370 520 $240 $130 420 100 The sales mix for products Yankee and Zoro is 20% and 80%, respectively. Determine the break-even point in units of Yankee and Zoro. a. Product Model Yankee b. Product Model Zoro units units
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