6TB Problem Qu. 7-133 Shotz Corporation sells...Shotz Corporation sells three products: J, K, and L. The following information was taken from a recent budget:Unit salesSelling priceVariable costA. Sales mix:JKLB. Weighted-average CMC. Break-even volume:JKLJ68,000K$8854K221,000$Total fixed costs are anticipated to be $3,081,000.Required:A. Determine Shotz's sales mix.B. Determine the weighted-average contribution margin. (Round your answer to 2 decimal places.)C. Calculate the number of units of J, K, and L that must be sold to break even.7858%%%L51,000unitsunitsunits$6741

A. The sales mix is calculated by J K L TotalUnit sales 68,000…

Answered: Shotz Corporation sells three products:…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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a. Yountz Company budgets sales of $1,130,000, fixed costs of $68,600, and variable costs of $305,100. What is the contribution margin ratio for Yountz Company? (Enter your answer as a whole number.)fill in the blank 1 % b. If the contribution margin ratio for Vera Company is 38%, sales were $809,000, and fixed costs were $224,420, what was the income from operations?$fill in the blank 2
Gladstorm Enterprises sells a product for $46 per unit. The variable cost is $34 per unit, while fixed costs are $9,300. Determine the: Round to the nearest whole number of units. a. Break-even point in sales units b. Determine the break-even point in sales units if the selling price increased to $59 per unit units
Milden Company is a distributor who wants to start using a contribution format income statement for planning purposes. The company has analyzed its expenses and developed the following cost formulas: Cost Cost Formula Cost of good sold $31 per unit sold Advertising expense $187,000 per quarter Sales commissions 7% of sales Shipping expense? Administrative salaries $97,000 per quarter Insurance expense $10,700 per quarter Depreciation expense $67,000 per quarter Because shipping expense is a mixed cost, the company needs to estimate the variable shipping expense per unit sold and the fixed shipping expense per quarter using the following data: Shipping Expense Year 1: First 33,000 $177,000 Second 35,000 $ 192,000 Third 40,000 $234,000 Fourth 36,000 $ 197,000 Year 2: First 34,000 $ 187,000 Second 37,000 $ 202,000 Third 48,750 $ 240,000 Fourth 45,750 $ 216,000 Required: 1. Using the high- low method, estimate a cost formula for shipping expense in the form Y = a + bX. 2. In the first…
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a. Young Company budgets sales of $960,000, fixed costs of $34,600, and variable costs of $153,600. What is the contribution margin ratio for Young Company? b. If the contribution margin ratio for Martinez Company is 61%, sales were $559,000, and fixed costs were $248,920, what was the operating income?
Willie Company sells 34,000 units at $47 per unit. Variable costs are $32.43 per unit, and fixed costs are $213,000. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income. a. Contribution margin ratio (Enter as a whole number.) fill in the blank 1 % b. Unit contribution margin (Round to the nearest cent.) $fill in the blank 2 per unit c. Operating income $fill in the blank 3
The controller of Ashton Company prepared the following projected income statement: Sales $97,000 Total variable cost 32,850 Total fixed cost 43,800 Operating income $20,440 Required: Calculate the contribution margin ratio?
2.
Contribution Margin Ratio a. Imelda Company budgets sales of S1,800,000, fixed costs of $394,000, and variable costs of $1,116,000. What is the contribution margin ratio for Imelda Company? (Enter your answer as a whole number.) b. If the contribution margin ratio for Peppa Company is 42%, sales were $2,500,000, and fixed costs were $590,000, what was the income from operations? $_
Finley Corporation has monthly fixed costs of $67,000. It sells two products for which it has provided the following information. Contribution Sales Price Product 1 Product 2 $15 20 Margin $9 4 a. What total monthly sales revenue is required to break even if the relative sales mix is 30 percent for Product 1 and 70 percent Product 2? (Hint: Determine the contribution margin ratio for each product.) (Round your answer to the nearest dollar amount.) b. What total monthly sales revenue is required to earn a monthly operating income of $16,000 if the relative sales mix is 20 perce for Product 1 and 80 percent for Product 2? (Round your answer to the nearest dollar amount.) Answer is complete but not entirely correct. a. Break even sales revenue $ 190,625 b. Target sales revenue $275,000 B
please provide correct option and give explanation and provide Definition
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 50,000 Variable expenses 27,500 Contribution margin 22,500 Fixed expenses 14,850 Net operating income $ 7,650 Required: 1. What is the contribution margin per unit? (Round your answer to 2 decimal places.)

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