E6-18 Analyzing Multiproduct CVP [LO 6-6]
Tiago makes three models of camera lens. Its product mix and
contribution margin per unit follow:
| Percentage of Unit sales | Contribution Margin per unit | |||
| Lens A | 28 | % | $ | 35 |
| Lens B | 41 | 27 | ||
| Lens C | 31 | 40 | ||
Required:
1. Determine the weighted-average contribution margin per
unit. (Round your intermediate calculations and final
answer to 2 decimal places.)
| Weighted Average CM | per unit |
2. Determine the number of units of each product
that Tiago must sell to break even if fixed costs are $192,000.
(Round intermediate calculations and final answers to the
nearest whole number.)
| Units of A | Units | |
| Units of B | Units | |
| Units of C | Units |
3. Determine how many units of each product must
be sold to generate a profit of $78,000. (Round
intermediate calculations and final answers to the nearest whole
number.)
| Units of A | Units | |
| Units of B | Units | |
| Units of C | Units |
1) Weighted average contribution margin per unit = (35*28%+27*41%+40*31%) = 33.27
2) Break even point (unit) = 192000/33.27 = 5771 Units
| Units of A (5771*28% | 1616 Units |
| Units of B (5771*41% | 2366 Units |
| Units of C (5771*31%) | 1789 Units |
3) Target unit (unit) = 192000+78000/33.27 = 8115 Units
| Units of A (8115*28% | 2272 Units |
| Units of B (8115*41% | 3327 Units |
| Units of C (8115*31%) | 2516 Units |
E6-18 Analyzing Multiproduct CVP [LO 6-6] Tiago makes three models of camera lens. Its product mix...
Chapter 6 Assignment i Saved Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: 10 Percentage of Unit Contribution Margin per sales unit 27% $41 33 points Lens A Lens B Lens C 36 37 46 eBook Required: 1. Determine the weighted average contribution margin per unit. 2. Determine the number of units of each product that Tiago must sell to break even if fixed costs are $192,000. 3. Determine how many units...
Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: Percentage of Unit sales Contribution Margin per unit Lens A 25 % $ 38 Lens B 40 30 Lens C 35 43 Suppose the product mix has shifted to 40/30/30. Required: 1. Determine the new weighted-average contribution margin per unit. 2. Determine the number of units of each product that Tiago must sell to break even if fixed costs are $187,000. 3. Determine how...
E6-22 (Algo) Multiproduct CVP Analysis [LO 6-6] Juniper Corp. makes three models of insulated thermos. Juniper has $314,000 in total revenue and total variable costs of $163,280. Its sales mix is given below: Percentage of total sales 31% Thermos A Thermos B Thermos C 42 27 Required: 1. Calculate the overall) weighted average contribution margin ratio. 2. Determine the total sales revenue Juniper needs to break even if fixed costs are $87,600. 3. Determine the total sales revenue needed to...
Lindstrom Company produces two fountain pen models. Information about its products follows: Product A Product B Sales revenue $ 100,000 $ 150,000 Less: Variable costs 39,000 52,500 Contribution margin $ 61,000 $ 97,500 Total units sold 5,000 5,000 Lindstrom’s fixed costs total $81,000. Required: 1. Determine Lindstrom’s weighted-average unit contribution margin and weighted-average contribution margin ratio. 2. Calculate Lindstrom’s break-even point in units and in sales revenue. 3. Calculate the number of units that Lindstrom must sell to earn a...
E6-3 Determining Break-Even Point, Target Profit, Margin of Safety [LO 6-1, 6-2, 6-3] Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed cost per month $ 13.21 2.31 1.10 0.21 $4,411.40 Required: 1. Determine Cove's break-even point in units and sales dollars. (Round your Break-Even Units answer to the nearest whole number. Round your other intermediate calculations and sales dollars answer to 2 decimal...
Lindstrom Company produces two fountain pen models. Information about its products follows: Product A Product B Sales revenue $ 125,000 $ 200,000 Less: Variable costs 52,000 50,000 Contribution margin $ 73,000 $ 150,000 Total units sold 5,000 5,000 Lindstrom’s fixed costs total $83,500. 1. Determine Lindstrom’s weighted-average unit contribution margin and weighted-average contribution margin ratio. (Round your weighted-average CM to 2 decimal places and Weighted-Average CM Ratio to 1 decimal place (i.e. .123 should be entered as 12.3%)). 2.Calculate Lindstrom’s...
Lindstrom Company produces two fountain pen models. Information about its products follows: Product A Product B Sales revenue $ 140,000 $ 190,000 Less: Variable costs 56,000 62,700 Contribution margin $ 84,000 $ 127,300 Total units sold 5,000 5,000 Lindstrom’s fixed costs total $85,000. Required: 1. Determine Lindstrom’s weighted-average unit contribution margin and weighted-average contribution margin ratio. (Round your weighted-average CM to 2 decimal places and your CM ratio to 1 decimal place (i.e. .123 should be entered as 12.3%)). 2....
Lindstrom Company produces two fountain pen models. Information about its products follows: Sales revenue Less: Variable costs Contribution margin Total units sold Product A $ 165,000 72,600 $ 92,400 5,000 Product B $215,000 60,200 $154,800 5,000 Lindstrom’s fixed costs total $87,500. Required: 1. Determine Lindstrom's weighted-average unit contribution margin and weighted-average contribution margin ratio. 2. Calculate Lindstrom's break-even point in units and in sales revenue. 3. Calculate the number of units that Lindstrom must sell to earn a $130,000 profit....
Exercise 5-18 Allocating product cost between cost of goods sold and ending inventory: Multiple purchases LO 5-6 Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 180 units at $43 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 260-unit purchase at $48 per unit; the second was a 390-unit purchase at $50 per unit. During the period, it sold 490 chairs. Required Determine the...
часот отр For 2019, SoakNFun expects a sales mix of two individual tickets for every three family tickets. SoakNFun's total fixed costs are $19,250. SoakNFun Swim Park sells individual and family tickets. With a ticket, each person receives a meal, three beverages, and unlimited use of the swimming pools. SoakNFun has the following ticket prices and variable costs for 2018: B (Click the icon to view the data.) Read the requirements. A Data Table 1 Requirements Individual $ 35 $...