The Cool Watch company sells two products. The company's water-resistant modelsells for $100, has a contribution margin of 35%, and generated sales of $100,000.The company's "basic timepiece" sells for $40, has a contribution margin of 40%, andgenerated sales of $80,000. Fixed expenses for the company as a whole were$50,000 and the product mix was constant.a) How many watches did the company sell?b) Compute the break-even point for the company in sales dollars. Round allcalculations to two decimal places.

Break-even sales is the dollar amount of revenue at which a business earns a profit of zero i.e. No…

Answered: The Cool Watch company sells two…

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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Please answer the following
XYZ, Inc. produces and sells two products: phones and tablets. XYZ plans to sell 48,000 phones and 12,000 tablets in the coming year. Product price and cost information includes: Price $1,200 for phones, $910 for tablets. Unit Variable Cost $225 for phones, $265 for tablets Direct Fixed Cost $272,100 for phones, $191,680 for tablets Common fixed selling and administrative expenses total $194,855. Part 1 What is the sales mix estimated for next year? Round your answer to two decimal places. Part 2 Using the rounded sales mix from Part 1, determine how many phones and tablets should be sold to break-even.
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