Loose Leaf For Fundamental Accounting Principles Format: Loose-leaf
Loose Leaf For Fundamental Accounting Principles Format: Loose-leaf
24th Edition
ISBN: 9781260158557
Author: Wild
Publisher: Mcgraw Hill Publishers
Question
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Chapter 21, Problem 21SP
To determine

Introduction:

Break Even Sales is very useful for determining the level at which organization is able to recover all its fixed expenses. Sometime when sales comprises of combination of products − then we have to calculate the Selling price of the standard Mix and calculate Break Even sales for the Selling price / contribution of the standard Mix.

To Calculate:

We are required to calculate the Variable Cost of composite Unit.

Expert Solution
Check Mark

Answer to Problem 21SP

Solution

The Variable Cost of Composite units is $ 2750

Explanation of Solution

Explanation:

The calculations are given here:


    Business Solutions
    Answer S. No.
    Details
    Desk
    Chair
    Value Composite unit


    $
    No.
    $
    No.
    $

    Selling Price
    1250

    500










    Selling Qty

    3

    2
    5







    1
    Sales Price Per composite unit




    4750








    Variable Cost Per Unit
    750

    250










    Units

    3

    2
    5







    2
    Variable Cost Per Composite Unit




    2750








    Contribution per Composite Unit




    2000








    Fixed Expenses




    120000







    3
    No of Composite Units to break even




    60







    4.1
    Sales of Desk
    60*3
    180










    4.2
    Sales of Chair
    60*2


    120

Conclusion

Conclusion: Variable Cost of Composite unit is $ 2750.

To determine

Introduction:

Break Even Sales is very useful for determining the level at which organization is able to recover all its fixed expenses. Sometime when sales comprises of combination of products − then we have to calculate the Selling price of the standard Mix and calculate Break Even sales for the Selling price / contribution of the standard Mix.

To Calculate:

We are required to calculate the Break Even Point in composite Unit.

Expert Solution
Check Mark

Answer to Problem 21SP

Solution

The Break even point in Composite unit is 60 Units.

Explanation of Solution

Explanation:

The calculations are given here:


    Business Solutions
    Answer S. No.
    Details
    Desk
    Chair
    Value Composite unit


    $
    No.
    $
    No.
    $

    Selling Price
    1250

    500










    Selling Qty

    3

    2
    5







    1
    Sales Price Per composite unit




    4750








    Variable Cost Per Unit
    750

    250










    Units

    3

    2
    5







    2
    Variable Cost Per Composite Unit




    2750








    Contribution per Composite Unit




    2000








    Fixed Expenses




    120000







    3
    No of Composite Units to break even




    60







    4.1
    Sales of Desk
    60*3
    180










    4.2
    Sales of Chair
    60*2


    120

Conclusion

Conclusion: Break Even Point in composite units is 60 Units.

To determine

Introduction:

Break Even Sales is very useful for determining the level at which organization is able to recover all its fixed expenses. Sometime when sales comprises of combination of products − then we have to calculate the Selling price of the standard Mix and calculate Break Even sales for the Selling price / contribution of the standard Mix.

To Calculate:

We are required to calculate the Number of units sold for each product to achieve break Even.

Expert Solution
Check Mark

Answer to Problem 21SP

Solution

We are required to sell 180 units of Desk and 120 units of Chair to achieve Break Even.

Explanation:

The calculations are given here:


    Business Solutions
    Answer S. No.
    Details
    Desk
    Chair
    Value Composite unit


    $
    No.
    $
    No.
    $

    Selling Price
    1250

    500










    Selling Qty

    3

    2
    5







    1
    Sales Price Per composite unit




    4750








    Variable Cost Per Unit
    750

    250










    Units

    3

    2
    5







    2
    Variable Cost Per Composite Unit




    2750








    Contribution per Composite Unit




    2000








    Fixed Expenses




    120000







    3
    No of Composite Units to break even




    60







    4.1
    Sales of Desk
    60*3
    180










    4.2
    Sales of Chair
    60*2


    120

Conclusion: We need to sell 180 Units of Modular Desk and 120 units of Office Chairs to achieve break even.

Explanation of Solution

Explanation:

The calculations are given here:


    Business Solutions
    Answer S. No.
    Details
    Desk
    Chair
    Value Composite unit


    $
    No.
    $
    No.
    $

    Selling Price
    1250

    500










    Selling Qty

    3

    2
    5







    1
    Sales Price Per composite unit




    4750








    Variable Cost Per Unit
    750

    250










    Units

    3

    2
    5







    2
    Variable Cost Per Composite Unit




    2750








    Contribution per Composite Unit




    2000








    Fixed Expenses




    120000







    3
    No of Composite Units to break even




    60







    4.1
    Sales of Desk
    60*3
    180










    4.2
    Sales of Chair
    60*2


    120

Conclusion

Conclusion: We need to sell 180 Units of Modular Desk and 120 units of Office Chairs to achieve break even.

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Chapter 21 Solutions

Loose Leaf For Fundamental Accounting Principles Format: Loose-leaf

Ch. 21 - Prob. 11DQCh. 21 - List three methods to measure cost behavior.Ch. 21 - Prob. 13DQCh. 21 - Prob. 14DQCh. 21 - Prob. 15DQCh. 21 - Prob. 16DQCh. 21 - Prob. 17DQCh. 21 - Prob. 18DQCh. 21 - Prob. 19DQCh. 21 - Prob. 20DQCh. 21 - Prob. 21DQCh. 21 - Prob. 22DQCh. 21 - Cost behavior identification C1 Listed here are...Ch. 21 - QS 21-2 Cost behavior identification c1 ...Ch. 21 - QS 21-3 Cost behavior estimation—high-low method...Ch. 21 - Prob. 4QSCh. 21 - Prob. 5QSCh. 21 - Prob. 6QSCh. 21 - Prob. 7QSCh. 21 - Prob. 8QSCh. 21 - Prob. 9QSCh. 21 - Prob. 10QSCh. 21 - Prob. 11QSCh. 21 - Prob. 12QSCh. 21 - Prob. 13QSCh. 21 - Prob. 14QSCh. 21 - Prob. 15QSCh. 21 - Prob. 16QSCh. 21 - Prob. 17QSCh. 21 - Prob. 18QSCh. 21 - Prob. 19QSCh. 21 - Prob. 20QSCh. 21 - Prob. 21QSCh. 21 - Prob. 1ECh. 21 - Prob. 2ECh. 21 - Prob. 3ECh. 21 - Prob. 4ECh. 21 - Prob. 5ECh. 21 - Prob. 6ECh. 21 - Prob. 7ECh. 21 - Prob. 8ECh. 21 - Prob. 9ECh. 21 - Prob. 10ECh. 21 - Prob. 11ECh. 21 - Prob. 12ECh. 21 - Prob. 13ECh. 21 - Prob. 14ECh. 21 - Prob. 15ECh. 21 - Prob. 16ECh. 21 - Prob. 17ECh. 21 - Prob. 18ECh. 21 - Prob. 19ECh. 21 - Prob. 20ECh. 21 - Prob. 21ECh. 21 - Prob. 22ECh. 21 - Prob. 23ECh. 21 - Prob. 24ECh. 21 - Prob. 25ECh. 21 - Prob. 26ECh. 21 - Prob. 27ECh. 21 - Prob. 1APSACh. 21 - Prob. 2APSACh. 21 - Prob. 3APSACh. 21 - Prob. 4APSACh. 21 - Prob. 5APSACh. 21 - Prob. 6APSACh. 21 - Prob. 7APSACh. 21 - Prob. 1BPSBCh. 21 - Prob. 2BPSBCh. 21 - Prob. 3BPSBCh. 21 - Prob. 4BPSBCh. 21 - Prob. 5BPSBCh. 21 - Prob. 6BPSBCh. 21 - Prob. 7BPSBCh. 21 - Prob. 21SPCh. 21 - Prob. 2AACh. 21 - Prob. 3AACh. 21 - Labor costs of an auto repair mechanic are seldom...Ch. 21 - Prob. 2BTNCh. 21 - Prob. 4BTNCh. 21 - Prob. 6BTN
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