Homework Answers
Weighted average contribution margin=Respective contribution margin*Respective sales mix
=(35*0.7)+(62*0.3)=$43.1
Breakeven=Fixed cost/Weighted average contribution margin
=(215500/43.1)=5000 units
| Total number of products | 5000 units |
| Product Super(5000*70%) | 3500 units |
| Product Supreme(5000*30%) | 1500 units |
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Finch Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price...
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Rooney Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 92 (68) $ 24 Supreme $ 122 (81) $ 41 Rooney expects to incur annual fixed costs of $172,480. The relative sales mix of the products is 60 percent for Super and 40 percent for Supreme. Required a. Determine the total number of products (units of Super and Supreme combined) Rooney must sell to...
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Walton Company manufactures two products. The budgeted per-unit
contribution margin for each product follows:
Walton expects to incur annual fixed costs of $133,760. The
relative sales mix of the products is 70 percent for Super and 30
percent for Supreme.
Required
Determine the total number of products (units of Super and
Supreme combined) Walton must sell to break even.
How many units each of Super and Supreme must Walton sell to
break even?
Super Supreme s 97 $127 Sales price...
Exercise 3-15A Multiple product break-even analysis LO 3-6 Benson Company manufactures two products. The budgeted per-unit...
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Information concerning a product produced by Gibson Company appears as follows: Sales price per unit Variable...
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Information concerning a product produced by Zachary Company appears as follows: Sales price per unit Variable...
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Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as...
Yard Tools manufactures lawnmowers, weed-trimmers, and
chainsaws. Its sales mix and unit contribution margin are as
follows.
Sales Mix
Unit Contribution
Margin
Lawnmowers
20
%
$29
Weed-trimmers
50
%
$20
Chainsaws
30
%
$36
Yard Tools has fixed costs of $3,857,000.
Compute the number of units of each product that Yard Tools must
sell in order to break even under this product mix.
LawnmowersEnter a number of units
unitsWeed-trimmersEnter a number of units
unitsChainsawsEnter a number of units
units
Rooney Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 92 (68) $ 24 Supreme $ 122 (81) $ 41 Rooney expects to incur annual fixed costs of $172,480. The relative sales mix of the products is 60 percent for Super and 40 percent for Supreme. Required a. Determine the total number of products (units of Super and Supreme combined) Rooney must sell to...
Stuart Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 99 (69) $ 30 Supreme $126 (85) $ 41 3.25 Stuart expects to incur annual fixed costs of $144,480. The relative sales mix of the products is 60 percent for Super and 40 percent for Supreme. Required a. Determine the total number of products (units of Super and Supreme combined) Stuart must sell to...
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Benson Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 90 (57) $ 33 Supreme $138 (92) S46 Benson expects to incur annual fixed costs of $206,280. The relative sales mix of the products is 60 percent for Super and 40 percent for Supreme. Required a. Determine the total number of products (units of Super and Supreme combined) Benson must sell to break even....
Walton Company manufactures two products. The budgeted per-unit
contribution margin for each product follows:
Walton expects to incur annual fixed costs of $133,760. The
relative sales mix of the products is 70 percent for Super and 30
percent for Supreme.
Required
Determine the total number of products (units of Super and
Supreme combined) Walton must sell to break even.
How many units each of Super and Supreme must Walton sell to
break even?
Super Supreme s 97 $127 Sales price...
Exercise 3-15A Multiple product break-even analysis LO 3-6 Benson Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 108 (61) $ 47 Supreme $138 (88) $50 Benson expects to incur annual fixed costs of $192,800. The relative sales mix of the products is 60 percent for Super and 40 percent for Supreme. Required a. Determine the total number of products (units of Super and...
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Information concerning a product produced by Gibson Company appears as follows: Sales price per unit Variable cost per unit Total annual fixed manufacturing and operating costs $ 171 S87 $520,800 Required Determine the following: a. Contribution margin per unit. b. Number of units that Gibson must sell to break even. c. Sales level in units that Gibson must reach to earn a profit of $184,800. a. Contribution margin per unit b. Break-even in units c. Required sales in units
Information concerning a product produced by Zachary Company appears as follows: Sales price per unit Variable cost per unit Total annual fixed manufacturing and operating costs $ 162 $ 82 $536,000 Required Determine the following: a. Contribution margin per unit. b. Number of units that Zachary must sell to break even. c. Sales level in units that Zachary must reach to earn a profit of $240,000. a. Contribution margin per unit b. Break-even in units c. Required sales in units
Yard Tools manufactures lawnmowers, weed-trimmers, and
chainsaws. Its sales mix and unit contribution margin are as
follows.
Sales Mix
Unit Contribution
Margin
Lawnmowers
20
%
$29
Weed-trimmers
50
%
$20
Chainsaws
30
%
$36
Yard Tools has fixed costs of $3,857,000.
Compute the number of units of each product that Yard Tools must
sell in order to break even under this product mix.
LawnmowersEnter a number of units
unitsWeed-trimmersEnter a number of units
unitsChainsawsEnter a number of units
units
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