Sheridan Company has two divisions; Sporting Goods and Sports Gear. The sales mix is 55% for Sporting Goods and 45% for Sports Gear,as determined by total sales dollars. Sheridan incurs $6690000 in fixed costs. The contribution margin ratio for Sporting Goods is 20%,while for Sports Gear it is 60%. The weighted-average contribution margin ratio is

MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is one of the Important Cost…

Answered: Sheridan Company has two divisions;…

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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Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $554,200, and the sales mix is 40% bats and 60% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats 50 40 Gloves 130 80 a. Compute the break-even sales (units) for the overall enterprise product, E. units b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point? Baseball bats units Baseball gloves units
Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $251,600, and the sales mix is 40% bats and 60% gloves The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $50 $40 Gloves 130 80 a. Compute the break-even sales (units) for the overall enterprise product, E. units b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point? Baseball bats units Baseball gloves units
JPL Company has two segments - Retail and Commercial. The Retail segment has a contribution margin ratio of 40% and traceable fixed expenses of $70,000. Commercial has traceable fixed expenses of $50,000 and a contribution margin ratio of 55%. The company also has $30,000 of common fixed expenses. The break-even point in dollar sales for the Retail segment equals O $175,000 O $250,000 O $212,500 O $116,667
Bear Corp. has sales of $708,000. The company also reports a contribution margin ratio of 30% and a profit of $45,000. If 20,000 units were sold, what is the variable cost per unit?
Bonita Industries has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Bonita incurs $6012500 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. The break-even point in dollars is $15031250. $2224625. $13982558. $16250000.
Bonita Industries has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Bonita incurs $5365000 in fixed costs. The contribution margin ratio for Sporting Goods is 30 % , while for Sports Gear it is 50%. What will sales be for the Sporting Goods Division at the break-even point? O $8109884 O $5075000 O $9425000. O $4350000.
Vikram Bhai
Omlstead company has fixed costs of $723,520. the unit selling price, variable cost per unit and contributing margin for per unit for the company's two products follow: The sales mix for products QQ and ZZ is 70% and 30%, respectively. Determine the break-even point in units of QQ and ZZ.
Couzen's Company’s cost structure is dominated by variable costs with a contribution margin ratio of 0.27 and fixed costs of $513,000. Every dollar of sales contributes 27 cents toward fixed costs and profit. The cost structure of a competitor, Jones & Family, is dominated by fixed costs with a higher contribution margin ratio of 0.77 and fixed costs of $2,650,500. Every dollar of sales contributes 77 cents toward fixed costs and profit. Both companies have sales of $4,275,000 annually. Required: Compare the two companies’ cost structures. Suppose that both companies experience a 12 percent decrease in sales volume. By how much would each company’s profits decrease?
Cullumber Company makes three models of tasers. Information on the three products is given below. Sales Variable expenses Contribution margin Fixed expenses Net income (a) Net income $ (b) Shocker Net Income Tingler $300,000 $500,000 Tingler Net Income $ Total Net Income (c) Why or why not? Compute current net income for Cullumber Company. ta Net income would 151,400 148,600 $ 119,400 S $29,200 Fixed expenses consist of $298,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $30,000 (Tingler), $80,800 (Shocker), and $34,300 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out. James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income. Shocker 197,000 303,000 229,800 $73,200 Compute net income by product line and in total for…

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