Sales Mix Biblio Files Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Basic and Deluxe. The company has compiled the following estimates for the new product offerings. Type of Bookshelf Basic Deluxe Type of Bookshelf Basic Sales Price per Unit Deluxe $5.00 9.00 The company is interested in determining how many of each type of bookshelf would have to be sold in order to break even. If we think of the Basic and Deluxe products as components of one overall enterprise product called "Combined," the unit contribution margin for the Combined product would be $2.31. Fixed costs for the upcoming year are estimated at $323,400. Recall that the totals of all the sales mix percents must be 100%. Determine the amounts to complete the following table. Percent of Sales Mix % Variable Cost per Unit % $1.75 8.10 Break-Even Sales in Units Break-Even Sales in Dollars

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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**Sales Mix Analysis**

Biblio Files Company is making plans for its next fiscal year and has decided to sell two new types of bookshelves, Basic and Deluxe. The company has compiled the following estimates for these new product offerings:

| Type of Bookshelf | Sales Price per Unit | Variable Cost per Unit |
|-------------------|----------------------|------------------------|
| Basic             | $5.00                | $1.75                  |
| Deluxe            | $9.00                | $8.10                  |

The company is interested in determining how many of each type of bookshelf would need to be sold in order to break even. If we consider the Basic and Deluxe products as components of one overall enterprise product called “Combined,” the unit contribution margin for the Combined product would be $2.31. Fixed costs for the upcoming year are estimated at $323,400. Recall that the totals of all the sales mix percentages must be 100%. Determine the amounts to complete the following table.

| Type of Bookshelf | Percent of Sales Mix | Break-Even Sales in Units | Break-Even Sales in Dollars |
|-------------------|----------------------|---------------------------|-----------------------------|
| Basic             | \[\] %               | \[\]                      | $ \[\]                      |
| Deluxe            | \[\] %               | \[\]                      | $ \[\]                      |
Transcribed Image Text:**Sales Mix Analysis** Biblio Files Company is making plans for its next fiscal year and has decided to sell two new types of bookshelves, Basic and Deluxe. The company has compiled the following estimates for these new product offerings: | Type of Bookshelf | Sales Price per Unit | Variable Cost per Unit | |-------------------|----------------------|------------------------| | Basic | $5.00 | $1.75 | | Deluxe | $9.00 | $8.10 | The company is interested in determining how many of each type of bookshelf would need to be sold in order to break even. If we consider the Basic and Deluxe products as components of one overall enterprise product called “Combined,” the unit contribution margin for the Combined product would be $2.31. Fixed costs for the upcoming year are estimated at $323,400. Recall that the totals of all the sales mix percentages must be 100%. Determine the amounts to complete the following table. | Type of Bookshelf | Percent of Sales Mix | Break-Even Sales in Units | Break-Even Sales in Dollars | |-------------------|----------------------|---------------------------|-----------------------------| | Basic | \[\] % | \[\] | $ \[\] | | Deluxe | \[\] % | \[\] | $ \[\] |
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