Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runners- Warm and Cozy. Current revenue, cost, and unit sales data for the two products appear below: Selling price per pair Variable expenses per pair Number of pairs sold monthly Warm Fixed expenses are $2,340 per month. Required: 1. Assuming the sales mix above, do the following: Break-even sales dollars Margin of safety in dollars Margin of safety in percentage $10.00 $2.50 $ 2,700 units a. Prepare a contribution format income statement showing both dollars and percentage columns for each product and for the company as a whole. (Round percentage answers to 2 decimal places.) 0 WARM HANDS Contribution Income Statement Warm Cozy $15.00 $ 7.50 900 units Cozy 0.00 $0 % 0.00 $ Total 0 0 % b. Compute the break-even point in sales dollars for the company as a whole and the margin of safety in both dollars and percentage of sales. (Do not round your intermediate calculations. Round percentage answer to 2 decimal places.) 0.00
Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runners- Warm and Cozy. Current revenue, cost, and unit sales data for the two products appear below: Selling price per pair Variable expenses per pair Number of pairs sold monthly Warm Fixed expenses are $2,340 per month. Required: 1. Assuming the sales mix above, do the following: Break-even sales dollars Margin of safety in dollars Margin of safety in percentage $10.00 $2.50 $ 2,700 units a. Prepare a contribution format income statement showing both dollars and percentage columns for each product and for the company as a whole. (Round percentage answers to 2 decimal places.) 0 WARM HANDS Contribution Income Statement Warm Cozy $15.00 $ 7.50 900 units Cozy 0.00 $0 % 0.00 $ Total 0 0 % b. Compute the break-even point in sales dollars for the company as a whole and the margin of safety in both dollars and percentage of sales. (Do not round your intermediate calculations. Round percentage answer to 2 decimal places.) 0.00
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 12E: Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the...
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![Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runners-
Warm and Cozy. Current revenue, cost, and unit sales data for the two products appear below:
Selling price per pair
Variable expenses per pair
Number of pairs sold monthly
Fixed expenses are $2,340 per month.
Required:
1. Assuming the sales mix above, do the following:
Break-even sales dollars
Margin of safety in dollars
Margin of safety in percentage
Warm
$10.00
$ 2.50
2,700 units
$
a. Prepare a contribution format income statement showing both dollars and percentage columns for each product and for the
company as a whole. (Round percentage answers to 2 decimal places.)
WARM HANDS
Contribution Income Statement
Warm
0
%
0.00 $
Cozy
$ 15.00
$ 7.50
%
900 units
Cozy
0
%
0.00
$
Total
0
0
%
b. Compute the break-even point in sales dollars for the company as a whole and the margin of safety in both dollars and percentage
of sales. (Do not round your intermediate calculations. Round percentage answer to 2 decimal places.)
0.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbbb1e3db-a6a8-4e19-9190-2974771c4d11%2Fa17b85c4-fa8a-4ed7-8ba1-80206762dc07%2Fm97pxhd_processed.png&w=3840&q=75)
Transcribed Image Text:Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runners-
Warm and Cozy. Current revenue, cost, and unit sales data for the two products appear below:
Selling price per pair
Variable expenses per pair
Number of pairs sold monthly
Fixed expenses are $2,340 per month.
Required:
1. Assuming the sales mix above, do the following:
Break-even sales dollars
Margin of safety in dollars
Margin of safety in percentage
Warm
$10.00
$ 2.50
2,700 units
$
a. Prepare a contribution format income statement showing both dollars and percentage columns for each product and for the
company as a whole. (Round percentage answers to 2 decimal places.)
WARM HANDS
Contribution Income Statement
Warm
0
%
0.00 $
Cozy
$ 15.00
$ 7.50
%
900 units
Cozy
0
%
0.00
$
Total
0
0
%
b. Compute the break-even point in sales dollars for the company as a whole and the margin of safety in both dollars and percentage
of sales. (Do not round your intermediate calculations. Round percentage answer to 2 decimal places.)
0.00
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