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.

Question

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Answer 1

Question

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

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

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

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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Students have asked these similar questions

NO WRONG ANSWER

Anjali Brewery has estimated budgeted costs of $72,600, $78,900, and $85,200 for the manufacture of 4,000, 5,000, and 6,000 gallons of beer, respectively, next quarter. What are the variable and fixed manufacturing costs in the flexible budget for Anjali Brewery? Answer

Calculate the labor variance

Answer 2

Question

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

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

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

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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Answer 3

Question

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

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

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

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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Answer 4

Question

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

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

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

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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Answer 5

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

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

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

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.

Answer 6

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

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.

Answer 7

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.

Answer 8

Expert Solution

Answer to Problem 21SP

Solution

The Variable Cost of Composite units is $ 2750

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

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

Answer 13

Conclusion

Conclusion: Variable Cost of Composite unit is $ 2750.

Answer 14

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

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.

Answer 15

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.

Answer 16

Expert Solution

Answer to Problem 21SP

Solution

The Break even point in Composite unit is 60 Units.

Answer 17

Expert Solution

Answer 18

Expert Solution

Answer 19

Expert Solution

Answer 20

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

Answer 21

Conclusion

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

Answer 22

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

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.

Answer 23

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.

Answer 24

Expert Solution

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.

Answer 25

Expert Solution

Answer 26

Expert Solution

Answer 27

Expert Solution

Answer 28

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