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

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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