**Sandhill Corporation Product Analysis**Sandhill Corporation sells three different models of a mosquito "zapper". Below are the details for each model:1. **Model A12** - Selling Price: $49 - Unit Variable Costs: $34.30 - Sales Mix: 60%2. **Model B22** - Selling Price: $98 - Unit Variable Costs: $68.60 - Sales Mix: 15%3. **Model C124** - Selling Price: $392 - Unit Variable Costs: $294 - Sales Mix: 25%**Break-Even Analysis**Sandhill Corporation has fixed costs totaling $267,883. To determine the break-even point, calculate how many units of each model must be sold. **Instructions for Calculation:**- Use the given sales mix percentages.- Round per unit values to 2 decimal places (e.g., 15.25).- Round final answers to 0 decimal places (e.g., 5.275).**Break-Even Calculation Summary:**| Model | Units Required for Break-Even ||---------------|--------------------------------|| A12 | || B22 | || C124 | || **Total Break-Even Point** | |

The break-even point indicates that total units are to be sold by the business entity to recover its…

Answered: Sandhill Corporation sells three…

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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X Corp produces 200 units of A and 100 units of B products. Final sales amount of A is 9,000. Joint cost is 6,600. Cost beyond the split off point is 3,000 each for both A and B. Using NRV or adjusted sale value method, the computed unit cost of A is 22 per unit. What is the Final sales amount of product B?
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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: Sales Price Variable Cost Product per Unit per Unit $30 AA $50 BB 35 10 CC 25 15 Their sales mix is reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $253,500 per year. A. What are total variable costs for Morris with their current product mix? Total variable costs $ B. Calculate the number of units of each product that will need to be sold in order for Morris to break even. Number of Units per Product AA BB C. What is their break-even point in sales dollars? Break-even point in sales $ D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0". Income Statement Sales Product AA Product BB Product CC Total Sales Variable Costs Product AA Product BB Product CC Total Variable Costs $ Contribution Margin Fixed Costs Net Income
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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…
Pau, Inc., which has fixed costs of $88,333, sells two products whose sales price, variable cost per unit, and percentage of sales units are presented in the table below. Product A Product B $ 22 $ 9 40 % Sales Price $ $ 17 Variable Cost Sales Mix 60% How many units of Product B must Pau sell to break even Do not round intermediate calculations. Round your final answer to the nearest whole number.

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