**Sunland Corporation Break-Even Analysis**Sunland Corporation sells three different models of a mosquito "zapper." Here are the details:- **Model A12**: - Selling Price: $47 - Unit Variable Costs: $32.90- **Model B22**: - Selling Price: $94 - Unit Variable Costs: $65.80- **Model C124**: - Selling Price: $376 - Unit Variable Costs: $282The sales mix (as a percentage of total units) for the models is:- A12: 60%- B22: 15%- C124: 25%If the company has fixed costs of $267,806, how many units of each model must the company sell in order to break even? *(Round per unit values to 2 decimal places, e.g., 15.25, and final answers to 0 decimal places, e.g., 5,275.)***Model:**- A12: [Input field]- B22: [Input field]- C124: [Input field]**Total break-even point:** [Input field] units

Break-even point When revenues and expenses are equal, a business reaches its break-even point.…

Answered: Sunland 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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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: Product Sales Priceper Unit Variable Costper Unit AA $45 $30 BB 35 10 CC 35 5 Their sales mix is reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $189,000 per year. A. What are total variable costs for Morris with their current product mix? Total variable costs $fill in the blank b16d34fd6fb7fb3_1 B. Calculate the number of units of each product that will need to be sold in order for Morris to break even. Number ofUnits per Product AA fill in the blank BB fill in the blank CC fill in the blank C. What is their break-even point in sales dollars? Break-even point in sales $fill in the blank
Abilene Industries manufactures and sells three products (XX, YY, and ZZ). The sales price and unit variable cost for the three products are as follows: Their sales mix is reflected as a ratio of 4:2:1. Annual fixed costs shared by the three products are $345,000 per year. What are total variable costs for Abilene with their current product mix? Calculate the number of units of each product that will need to be sold in order for Abilene to break even. What is their break-even point in sales dollars? Using an income statement format, prove that this is the break-even point.
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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: Selling price per unit Variable expense per unit Number of units sold annually Fixed expenses total $652,800 per year. Hawaiian Fantasy $ 30 $21 30,000 Tahitian Joy $ 100 $ 25 6,000 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 $30 each and that has variable expenses of $18 per unit. If the company can sell 12,500 units of Samoan Delight without incurring any additional fixed expenses: a. Prepare a revised contribution…

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