The sales mix percentages for Vaughn's Boston and Seattle Divisions are 70% and 30%. The contribution margin ratios are: Boston(40%) and Seattle (30%). Fixed costs are $1942500. What is Vaughn's break-even point in dollars?O $5250000.O $5550000.O $5886364.O $679875.

Variable costs are those costs which changes with level of sales. Fixed costs do not change with…

Answered: The sales mix percentages for Vaughn's…

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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For Crane Company, sales is $1000000, fixed expenses are $150000, and the contribution margin per unit is $60. What is the break-even point? $250000 sales dollars 16667 units 2500 units $166667 sales dollars
Ed Vaughn Corporation has two divisions; Outdoor Sports and Indoor Sports. The sales mix is 60% for Outdoor Sports and 40% for Indoor Sports. Vaughn incurs $2360000 in fıxed costs. The contribution margin ratio for the Outdoor Sports Division is 40%, while for the Indoor Sports Division it is 20%. What is the total contribution margin at the break-even point? O $11800000 O $2360000 O $1416000 O $944000
Jakarta Company is a service firm with current service revenue of $300,000 and a 30% contribution margin. Its fixed costs are $36,000. Maldives Company has current sales of $6,560,000 and a 45% contribution margin. Its fixed costs are $1,918,800. A. What is the margin of safety for Jakarta and Maldives? If required, round final answers to one decimal place. Margin of safety for Jakarta: fill in the blank 1% Margin of safety for Maldives: fill in the blank 2% D. Compute the degree of operating leverage for both companies. If required, round final answers to two decimal places. Operating leverage: Jakarta fill in the blank 5 Maldives fill in the blank 6
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Division X makes a part with the following characteristics: Production capacity.. 25,000 units $18 Selling price to outside customers. Variable cost per unit. $11 Fixed cost, total. $100,000 Division Y of the same company would like to purchase 10,000 units each period from Division X. Division Y now purchases the part from an outside supplier at a price of $17 each. Suppose that Division X is operating at capacity and can sell all of its output to outside customers. If Division X sells the parts to Division Y at $17 per unit, the company as a whole will be: Select one: a. better off by $10,000 each period. b. worse off by $20,000 each period. C. worse off by $10,000 each period. d. There will be no change in the status of the company as a whole.
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The sales mix percentages for Vaughn's Boston and Seattle Divisions are 70% and 30%. The contribution margin ratios are: Boston (40%) and Seattle (30%). Fixed costs are $1942500. What is Vaughn's break-even point in dollars? O $5250000. O $5550000. O $5886364. O $679875.