Unit Unit Unit Variable Contribution Sales Contribution Product Price Cost Margin Mix Margin %3D %3D Shoes Carryall Package total 2. Calculate the break-even point in units for pairs of shoes and for carryalls. Break-Even Pairs of Shoes units Break-Even Carryalls units 3. Check your answer by preparing a contribution margin income statement. Enter all amounts as positive value. Chillmax Company Contribution Margin Income Statement At Break-Even Point in Units for a Multiple-Product Firm Total Sales Total variable cost Total contribution margin Total fixed cost Operating income

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Package
Unit
Unit
Unit
Variable
Contribution
Sales
Contribution
Product
Price
Cost
Margin
Mix
Margin
Shoes
$
Carryall
Package total
$
2. Calculate the break-even point in units for pairs of shoes and for carryalls.
Break-Even Pairs of Shoes
units
Break-Even Carryalls
units
3. Check your answer by preparing a contribution margin income statement. Enter all amounts as positive value.
Chillmax Company
Contribution Margin Income Statement
At Break-Even Point in Units for a Multiple-Product Firm
Total
Sales
$4
Total variable cost
Total contribution margin
Total fixed cost
Operating income
Transcribed Image Text:Package Unit Unit Unit Variable Contribution Sales Contribution Product Price Cost Margin Mix Margin Shoes $ Carryall Package total $ 2. Calculate the break-even point in units for pairs of shoes and for carryalls. Break-Even Pairs of Shoes units Break-Even Carryalls units 3. Check your answer by preparing a contribution margin income statement. Enter all amounts as positive value. Chillmax Company Contribution Margin Income Statement At Break-Even Point in Units for a Multiple-Product Firm Total Sales $4 Total variable cost Total contribution margin Total fixed cost Operating income
Break-Even Point in Units for a Multiple-Product Firm
Suppose that Chillmax Company now sells both pairs of shoes and fabric carryalls. The pairs of shoes are priced at $60 and have variable costs of $21 each. The carryalls
are priced at $36 and have variable costs of $9 each. Total fixed cost for Chillmax as a whole equals $91,500 (includes all fixed factory overhead and fixed selling and
administrative expense). Next year, Chillmax expects to sell 3,500 pairs of shoes and 875 carryalls.
Required:
1. Form a package of shoes and carryalls based on the sales mix expected for the coming year.
Package
Unit
Unit
Unit
Variable
Contribution
Sales
Contribution
Product
Price
Cost
Margin
Mix
Margin
Shoes
Carryall
Package total
2. Calculate the break-even point in units for pairs of shoes and for carryalls.
Break-Even Pairs of Shoes
units
Break-Even Carryalls
units
3. Check your answer by preparing a contribution margin income statement. Enter all amounts as positive value.
Chillmax Company
Contribution Margin Income Statement
At Break-Even Point in Units for a Multiple-Product Firm
Total
Transcribed Image Text:Break-Even Point in Units for a Multiple-Product Firm Suppose that Chillmax Company now sells both pairs of shoes and fabric carryalls. The pairs of shoes are priced at $60 and have variable costs of $21 each. The carryalls are priced at $36 and have variable costs of $9 each. Total fixed cost for Chillmax as a whole equals $91,500 (includes all fixed factory overhead and fixed selling and administrative expense). Next year, Chillmax expects to sell 3,500 pairs of shoes and 875 carryalls. Required: 1. Form a package of shoes and carryalls based on the sales mix expected for the coming year. Package Unit Unit Unit Variable Contribution Sales Contribution Product Price Cost Margin Mix Margin Shoes Carryall Package total 2. Calculate the break-even point in units for pairs of shoes and for carryalls. Break-Even Pairs of Shoes units Break-Even Carryalls units 3. Check your answer by preparing a contribution margin income statement. Enter all amounts as positive value. Chillmax Company Contribution Margin Income Statement At Break-Even Point in Units for a Multiple-Product Firm Total
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