Aspen Industries sells two products, Basic models and Deluxe models. Basic models sell for $46 per unit with variable costs of $14 per unit. Deluxe models sell for $62 per unit with variable costs of $26 per unit. Total fixed costs for the company are $1,716. Aspen Industries typically sells three Basic models for every Deluxe model. What is the breakeven point for Basic models and Deluxe models? 36 units of Basic; 32 units of Deluxe 13 units of Basic; 39 units of Deluxe 39 units of Basic; 13 units of Deluxe 32 units of Basic; 36 units of Deluxe

Aspen Industries sells two products, Basic models and Deluxe models. Basic models sell for $46 per unit with variable costs of $14 per unit. Deluxe models sell for $62 per unit with variable costs of $26 per unit. Total fixed costs for the company are $1,716. Aspen Industries typically sells three Basic models for every Deluxe model. What is the breakeven point for Basic models and Deluxe models? 36 units of Basic; 32 units of Deluxe 13 units of Basic; 39 units of Deluxe 39 units of Basic; 13 units of Deluxe 32 units of Basic; 36 units of Deluxe

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7PA: Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model...

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Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.
Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.
Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
Gabe industires sells two products, baic models and deluxe models. Basic models sell for $38 per unit with variable costs of $30 per unit. Deluxe models sell for $55 per unit with variable costs of $30 per unit. Total fixed costs for the company are $715. Gabe industries typically sells five basic models for every deluxe model. What is the breakeven point for basic models and deluxe models?
Mayfield Company sells two products, Blue models and Plaid models. Blue models sell for $44 per unit with variable costs of $35 per unit. Plaid models sell for $55 per unit with variable costs of $40 per unit. Total fixed costs for the company are $12,000. Mayfield Company typically sells four Blue models for every three Plaid models. What is the breakeven point in total units? (Round any intermediary calculations to the nearest whole number.) O A. 148 units O B. 1,714 units O C. 1,000 units O D. 267 units
Friar Corp. sells two products. Product A sells for $112 per unit, and has unit variable costs of $65. Product B sells for $102 per unit, and has unit variable costs of $59. Currently, Friar sells three units of Product B for every one unit of Product A sold. Friar has fixed costs of $752,400. How many units would Friar have to sell to earn a profit of $250,800?
Wren Co. manufactures and sells two products with selling prices and variable costs as follows: A) selling price $18.00, variable costs $12.00, and B) selling price $22.00, variable costs $14.00. Wren's total annual fixed costs are $38,400. Wren sells four units of A for every unit of B. If operating income was $28,800 what was the number of units Wren sold?
Asher Company sells two products—X and Y. Product X is sold for $30 per unit and has a variable cost per unit of $15. Product Y is sold for $30 per unit and has a variable cost of $10 per unit. Total fixed costs for the company are $20,000. Asher Company typically sells three units of Product X for every unit of Product Y. What is the breakeven point in total units? (Round any intermediate calculations to two decimal places, and your answer to the nearest unit.)
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Dellcom Inc. sells two products: a regular and a deluxe version. The owner would like to better understand the impact of the sales mix on the company's sales. The following information is available: Regular Deluxe Sales price per unit Variable cost per unit $38 $61 $15 $34 The company has total fixed costs of $384,615 for the year and they sell 9 Regular products for every 4 Deluxe product. The owner would like to know, given the sales mix, how many units of each product the company must sell per year to break even. The company must sell units of the Regular product. Enter the number of units given the current sales mix. The company must sell units of the Deluxe product. Enter the number of units given the current sales mix.
Friar Corp. sells two products. Product A sells for $112 per unit, and has unit variable costs of $64. Product B sells for $78 per unit, and has unit variable costs of $47. Currently, Friar sells three units of product B for every one unit of product A sold. Friar has fixed costs of $634,500. What is Friar's break-even point in units? Multiple Choice 13,500 units of A and 4,500 units of B 9,000 units of A and 9,000 units of B 4,500 units of A and 13,500 units of B 18,000 units of A and 18,000 units of B
The Stackpole Company retails two products, a standard and deluxe version of a luggage carrier.The standard carrier sells for $38, has variable costs of $23, and direct fixed costs of $800,000. The deluxe model sells for $56, has variable costs of $34, and direct fixed costs of $1,500,000. The company has common fixed costs of $250,000. The anticipated sales mix for the company is 4:1 or 80/20. The actual level of sales units currently is 250,000 (total for both products) and your target income is $1,250,000. You expect sales to rise 10% in the coming year. Directions: You have been hired to build a CVP model to help the company understand the impact of business conditions on operating income. Your model should include breakeven in units with a pro forma income statement, units sales for a target income of $1,250,000 with a pro forma income statement, an income statement reflecting actual current sales, margin of safety in dollars and %, and degree of operating leverage. Your model…