Steven Company has fixed costs of $428,856. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two productsare provided below.Variable Cost per Unit$510380units of Xunits of YProduct Selling Price per UnitX$1,360Y710The sales mix for Products X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y. Round answers to the nearestwhole number.Contribution Margin per Unit$850330

Break even sales is the dollar amount of revenue at which a business earns a profit of zero. This…

Answered: Steven Company has fixed costs of…

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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Steven Company has fixed costs of $431,844. 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 per Unit Variable Cost per Unit Contribution Margin per Unit X $1,344 $504 $840 Y 710 380 330 The sales mix for Products X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y. Round answers to the nearest whole number. ____units of X ____units of Y
Steven Company has fixed costs of $443,940. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Priceper unit Variable Cost per unit Contribution Marginper unit X $1,216 $456 $760 Y 710 380 330 The sales mix for products X and Y is 60% and 40% respectively. Determine the break-even point in units of X and Y combined. Round answer to nearest whole number.fill in the blank 1units
Ritchie Manufacturing Company makes a product that it sells for $180 per unit. The company incurs variable manufacturing costs of $100 per unit. Variable selling expenses are $17 per unit, annual fixed manufacturing costs are $460,000, and fixed selling and administrative costs are $195,200 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation method. b. Use the contribution margin per unit approach. c. Use the contribution margin ratio approach. d. Prepare a contribution margin income statement for the break-even sales volume. Complete this question by entering your answers in the tabs below. Req A to C Req D Determine the break-even point in units and dollars using the equation method, the contribution margin per unit approach and the contribution margin ratio approach. a. Break-even point in units a. Break-even point in dollars b. Contribution margin per unit b. Break-even point in units b. Break-even point…
Campbell Corporation sells products for $31 each that have variable costs of $18 per unit. Campbell's annual fixed cost is $295,100. Required Use the per-unit contribution margin approach to determine the break-even point in units and dollars.
Sunn Company manufactures a single product that sells for $215 per unit and whose variable costs are $172 per unit. The company's annual fixed costs are $597,700. (a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. Numerator: (c) Compute the company's break-even point in units. 1 1 Numerator: 1 1 Numerator: Denominator: Denominator: (d) Compute the company's break-even point in dollars of sales. 1 1 Denominator: = = II II = Contribution Margin Ratio Contribution margin ratio Break-Even Units Break-even units Break-Even Dollars Break-even dollars
Thornton Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $44. 12 Variable costs Manufacturing Selling Fixed costs Manufacturing Selling and administrative 17 per unit 6 per unit $152,000 per year $102,100 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit of $178,500. c. Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 21,400 units, how much could it pay in salaries for salespeople and still have a profit of $178,500? (Hint Use the equation method.) a. Break-even point in units Break-even point in dollars b Required sales in units Required sales in dollars C Fixed cost of salaries
Lindstrom Company produces two fountain pen models. Information about its products follows: Product A Product B Sales revenue Less: Variable costs Contribution margin Total units sold Lindstrom's fixed costs total $86,500. Required: $ 76,600 41,400 $ 46,000 5,000 $ 123,400 52,800 $ 91,000 5,000 1. Determine Lindstrom's weighted-average unit contribution margin and weighted-average contribution margin ratio. 2. Calculate Lindstrom's break-even point in units and in sales revenue. 3. Calculate the number of units that Lindstrom must sell to earn a $150,000 profit. 4. Calculate Lindstrom's margin of safety (in units and sales dollars) and margin of safety as a percentage of sales based on the sales data provided in the table above. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the number of units that Lindstrom must sell to earn a $150,000 profit. Note: Do not round your intermediate calculations. Round your answer…
Sunn Company manufactures a single product that sells for $210 per unit and whose variable costs are $168 per unit. The company's annual fixed costs are $575,400. (a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. 1 Numerator: (c) Compute the company's break-even point in units. 1 1 Numerator: Denominator: Numerator: Denominator: (d) Compute the company's break-even point in dollars of sales. 1 1 Denominator: II Contribution Margin Ratio Contribution margin ratio Break-Even Units Break-even units 0 Break-Even Dollars Break-even dollars 4
Ritchie manufacturing company makes a product that it sells for $170 per unit. The company incurs variable manufacturing costs of $86 per unit variable selling expenses are 416 per unit, annual fixed manufacturing costs are $458,000, and fixed selling and administrative costs are $242,400 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a) use the equation method b) use the contribution margin per unit approach c) prepare a contribution margin income statement for the break-even sales volume.
Bluegill Company sells 14,600 units at $320 per unit. Fixed costs are $233,600, and operating income is $1,635,200. Determine the following: a. Variable cost per unit $fill in the blank 1 b. Unit contribution margin $fill in the blank 2 per unit c. Contribution margin ratio fill in the blank 3 %
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.
Oriole Company has a unit selling price of $630, variable costs per unit of $410, and fixed costs of $199,980.Compute the break-even point in units using (a) the mathematical equation and (b) unit contribution margin. (a) Mathematical Equation (b) Unit contribution margin Break-even point units units

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