Witrox Bhd sells two models of smartphone, the Oppo and the Xiaomi. Oppo Xiaomi RM RM Sales price per unit 60.0 85.0 Variable cost per unit 35.0 54.0 Contribution margin per unit 25.0 31.0 Witrox has determined that it would break even at an annual sales volume of 50,000 units, of which 75% would be Oppo. Required: a) What are the contribution margin ratios for each product and the company? b) What is the amount of Witrox's estimated annual fixed costs? c) What is the sales mix? d) Prepare a product line income statement with operating income of RM500,000. Fixed production costs will increase RM45,000 and fixed administrative costs will increase RM22,500 to support the increase in volume.
Witrox Bhd sells two models of smartphone, the Oppo and the Xiaomi. Oppo Xiaomi RM RM Sales price per unit 60.0 85.0 Variable cost per unit 35.0 54.0 Contribution margin per unit 25.0 31.0 Witrox has determined that it would break even at an annual sales volume of 50,000 units, of which 75% would be Oppo. Required: a) What are the contribution margin ratios for each product and the company? b) What is the amount of Witrox's estimated annual fixed costs? c) What is the sales mix? d) Prepare a product line income statement with operating income of RM500,000. Fixed production costs will increase RM45,000 and fixed administrative costs will increase RM22,500 to support the increase in volume.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
Transcribed Image Text:Witrox Bhd sells two models of
smartphone, the Oppo and the Xiaomi.
Oppo Xiaomi RM RM Sales price per unit
60.0 85.0 Variable cost per unit 35.0 54.0
Contribution margin per unit 25.0 31.0
Witrox has determined that it would break
even at an annual sales volume of 50,000
units, of which 75% would be Oppo.
Required:
a) What are the contribution margin ratios
for each product and the company?
b) What is the amount of Witrox's
estimated annual fixed costs?
c) What is the sales mix?
d) Prepare a product line income statement
with operating income of RM500,000.
Fixed production costs will increase
RM45,000 and fixed administrative costs
will increase RM22,500 to support the
increase in volume.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 6 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education