The Janobi Company has three product lines of beer mugs-A, B, and C-with contribution margins of $5 $4, and $2, respectively. The president foresees sales of 238,000 units in the coming period, consisting of 34,000 units of A, 136,000 units of B, and 68,000 units of C. The company's fixed costs for the period are $525,000. Read the requirements. Requirement 1. What is the company's breakeven point in units, assuming that the given sales mix is maintained? Begin by determining the sales mix. For every 1 unit of Product A, units of Product B, and units of Product C are sold.

The Janobi Company has three product lines of beer mugs-A, B, and C-with contribution margins of $5 $4, and $2, respectively. The president foresees sales of 238,000 units in the coming period, consisting of 34,000 units of A, 136,000 units of B, and 68,000 units of C. The company's fixed costs for the period are $525,000. Read the requirements. Requirement 1. What is the company's breakeven point in units, assuming that the given sales mix is maintained? Begin by determining the sales mix. For every 1 unit of Product A, units of Product B, and units of Product C are sold.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

shrad
Please help me Thankyou.
The Konopka Company has three product lines of belts-A, B, and C-with contribution margins of $4, $3, and $2, respectively. The president foresees sales of 150,000 units in the coming period, consisting of 15,000 units of A, 75,000 units of B, and 60,000 units of C. The company's fixed costs for the period are $351,000. Read the requirements. Requirement 3. What would operating income be if 15,000 units of A, 60,000 units of B, and 75,000 units of C were sold? What is the new breakeven point in units if these relationships persist in the next period? Begin by completing the table below to calculate operating income. A B 15,000 60,000 $ 60,000 180,000 $ 75,000 150,000 Total 150,000 390,000 351,000 39,000 Units sold Contribution margin Fixed costs Operating income Now determine the new sales mix. For every 1 unit of A, 4 units of B are sold, and 5 units of C are sold. Now calculate the breakeven point in bundles for this requirement, then determine the breakeven point for each product…
John (Head of New York's Golf Club) has given you the following per unit estimates going into his second year of operation (beginning May 1,2021) for his only product at this point; the Duffer Club: Direct material: $94 Direct labour: $31 Variable overhead: $7.72 Selling price: $168 Tax rate: 20% Monthly fixed costs: $12.67 ($38,000 total fixed costs) Practical capacity and current production level: 3,000 units A) Calculate New York's Club monthly break-even sales of the Duffer Club in both units and dollars (round to nearest dollar and next unit) B) If New York Golf Club's strategy is to just break-even for the near future, how many additional Duffer clubs (units) above the current break-even point would need to be sold each month if the company wishes to increase their currently budgeted advertising costs by $12,000 per month. Assume no changes to the selling price or to any of Duffmeister'svariable costs given above.
Your Company has a limit of 65,000 machine hours for the production. It produces three products, with costs and selling prices as follows: Products C Demand in units 20,000 18,000 15,000 Selling price per unit $30 $20 $15 CM ratios 35% 25% 60% 3. 3 MH per unit What is the maximum contribution margin Your Company can make?
Ee 168.
Funtastic Company has capacity for the production and sales of 30,000 units. Current production is 15,000 units and fixed costs are $16 per unit. If production decreases to 10,000 units, fixed costs will:
Sales mix, three products. The Kenosha Company has three product lines of beer mugs—A, B, and C—with contribution margins of $5, $4, and $3, respectively. The president foresees sales of 175,000 units in the coming period, consisting of 25,000 units of A, 100,000 units of B, and 50,000 units of C. The company’s fixed costs for the period are $351,000. Q. Comparing the breakeven points in requirements 1 and 3, is it always better for a company to choose the sales mix that yields the lower breakeven point? Explain.
ohn (Head of New York's Golf Club) has given you the following per unit estimates going into his second year of operation (beginning May 1,2021) for his only product at this point; the Duffer Club: Direct material: $94 Direct labour: $31 Variable overhead: $7.72 Selling price: $168 Tax rate: 20% Monthly fixed costs: $12.67 ($38,000 total fixed costs) Practical capacity and current production level: 3,000 units A) Calculate New York's Club monthly break-even sales of the Duffer Club in both units and dollars (round to nearest dollar and next unit) B) If New York Golf Club's strategy is to just break-even for the near future, how many additional Duffer clubs (units) above the current break-even point would need to be sold each month if the company wishes to increase their currently budgeted advertising costs by $12,000 per month. Assume no changes to the selling price or to any of Duffmeister'svariable costs given above.
Division A has the capacity to produce 120,000 units. The normal selling price of each unit is P80. The variable cost incurred for each unit is P42. Total direct fixed cost for the relevant range is P1,150,000. Division B can use the products of Division A as an input in its manufacturing process but is currently acquiring the said products from an outside supplier. The price per unit is P75. Total annual demand is 30,000 units. 1. Assuming sufficient capacity, what is the minimum acceptable transfer price to Division A? 2. Assuming only 22,500 excess capacity, what is the minimum acceptable transfer price to Division A? 3. Assuming no excess capacity, what is the minimum acceptable transfer price to Division A? 4. What is the maximum acceptable transfer price to Division B?
he production cost information for Blossom's Salsa is as follows: Blossom's Salsa Production Costs April 2020 Production 23,000 Jars of Salsa Ingredient cost (variable) $13, 800 Labor cost (variable ) 9,660 Rent (fixed) 4, 300 Depreciation (fixed) 6,000 Other (fixed) 1,400 Total $35, 160 The company is currently producing and selling 345,000 jars of salsa annually. The jars sell for $7.00 each. The company is considering lowering the price to $6.30. Suppose this action will increase sales to 391, 000 jars. What is the incremental cost associated with producing an extra 46, 000 jars of salsa?
Carlyle Lighting Products produces two different types of lamps: a floor lamp and a desk lamp. Floor lamps sell for $30 and desk lamps sell for $20. The projected income statement for the upcoming year follows: Sales $600,000 Less: Variable costs 400,000 Contribution margin 200,000 Less: Fixed costs 150,000 Operating income $50,000 The owner of Carlyle’s estimates that 60 percent of the sales revenues will be produced by floor lamps and the remaining 40 percent by desk lamps. Floor lamps are also responsible for 60 percent of the variable expenses. Of the fixed expenses, one-third are common to both products, and one-half are directly traceable to the floor lamp product line. Required: By what percentage will profits increase with this change in sales volume? What is the theory behind the operating leverage concept?