A firm is selling two products, chairs and bar stools, each at $60 per unit. Chairs have a variable cost of $25, and bar stools $20. Fixed cost for the firm is $20,000.
a. If the sales mix is 1:1 (one chair sold for every bar stool sold), what is the break-even point in dollars of sales? In units of chairs and bar stools?
b. If the sales mix changes to 1:4 (one chair sold for every four bar stools sold), what is the break-even point in dollars of sales? In units of chairs and bar stools?
A firm is selling two products, chairs and bar stools, each at $60 per unit. Chairs...
Short term decision making Shot plc manufactures three types of furniture products - chairs, stools and tables. The budgeted unit cost and resource requirements of each of these items are detailed below: Chair ($) Stools($) Table ($) Timber cost 5.00 15.00 10.00 Direct labour cost 4.00 10.00 8.00 Variable overhead cost 3.00 7.50 6.00 Fixed overhead cost 4.50 11.25 9.00 16.50 43.75 33.00 Budgeted volumes per...
Short term decision making Shot plc manufactures three types of furniture products - chairs, stools and tables. The budgeted unit cost and resource requirements of each of these items are detailed below: Chair Stools Table ($) ($) ($) Timber cost 5.00 15.00 10.00 Direct labour cost 4.00 10.00 8.00 Variable overhead cost 3.00 7.50 6.00 Fixed overhead cost 4.50 11.25 9.00 16.50 43.75 33.00 Budgeted volumes 4,000 2,000 1,500 per annum ICLBAT/JANUARY2019 6 These volumes are believed to equal...
Lyon Factory Ltd. manufactures two products: chairs and stools. Each chair requires 3 m of upholstery and 4 kg steel. Each stool requires 2 m of upholstery and 5 kg of steel. Upholstery costs $2 per meter and steel costs $5 per kilogram. Lyon Factory expects inventories at January 1, 2017, to be as follows: Chairs Stools Upholstery 25 units 15 units 75 m Inventories of raw materials should not be allowed to fall below the amounts given as at...
Corporation manufactures inexpensive office chairs. The selling price is $125 per unit, and variable costs amount to $75 per unit. The fixed costs are $300,000 per month. Currently, the company is selling 8,000 chairs per month. Answer each of the following questions, rounding any units to the next higher full unit, if necessary. [The Handout on CVP relationships may help] (a) What are the contribution margin per chair and the contribution margin ratio? (b) What is the current monthly operating...
76. A firm selling three products has the following data: Unit Unit Variable Product Sales Mix Price Cost 60,000 units $40 S20 40,000 units 60 30 20,000 units 30 5 If the firm can change the sales mix from 60,000 P, 40,000 Q, and 20,000 R to 60,000 P, 20,000 Q, and 40,000 R, pre-tax income will be a) Lower b) Higher c) Unchanged d) Cannot be determined Answer: a Difficulty: Medium Learning Objective: Apply CVP calculations for multiple products....
2) A firm sells two products, Regular and Ultra. For every unit of Regular the firm sells, two units of Ultra are sold. The firm's total fixed costs are $1,100,000. Selling prices and cost information for both products follow. What is the firm's break-even point in units of Regular and Ultra? Product Unit Sales Variable Cost Price Per Unit Regular $ 15 $ Ultra
A firm sells two products, Regular and Ultra. For every unit of Regular the firm sells, two units of Ultra are sold. The firm's total fixed costs are $2,409,000. Selling prices and cost information for both products follow. What is the firm's break-even point in units of Regular and Ultra? Product Unit Sales Price Variable Cost Per Unit Regular $ 31 $ 11 Ultra 34 11
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Patriot Comanufactures and sells three products: red, white, and blue. Their unit selling prices are red, $60, white, S90, and blue, $115. The per unit variable costs to manufacture and sell these products are red, $45: white. $65, and blue, $85. Their sales mix is reflected in a ratio of 4.5 2 (red:white blue). Annual fixed costs shared by all three products are $155.000. One type of raw material has been used to manufacture all three products....
hi could you show me how to solve for these. my book
doesn't show an applicable method. thank you!
9-10. A firm manufactures two products, X and Y. The fixed costs are $80,000 and the sales mix is 40% X and 60% Y. The unit selling price and the unit variable cost for each product are as follows: it Selling Price $20 15 Unit Variable Cost $12 12 9. 9. The break-even sales (dollars) for the above sales mix................. 10....
Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are red, $60; white, $90; and blue $115. The per unit variable costs to manufacture and sell these products are red, $45; white, $65; and blue, $85. Their sales mix is reflected in a ratio of 4:5:2 (red:white:blue). Annual fixed costs shared by all three products are $155,000. One type of raw material has been used to manufacture all three products. The company has developed...