do no give solution in image Exercise 23-6 (Algo) Sales mix LO P3Colt Company produces two skateboard models. Machine time per unit for Hero is two hours and for Flip is one hour. The machine'scapacity is 1,820 hours per year. Colt can sell up to 632 units of Hero and 856 units of Flip per year. Selling prices and variable costsfollow.Selling price per unitVariable costs per unitContribution margin per unitHero$ 15652(a) Compute the contribution margin per machine hour for each product.HeroContribution margin per machine hour(b) Determine the best sales mix of products.Units produced and sold for most profitable sales mixHours required to produce most profitable sales mixFlip$9856(c) Compute the total contribution margin for the best sales mix.Units produced for most profitable sales mixContribution margin per unitTotal contribution marginHeroHeroFlipFlipFlipTotalTotal

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Answered: Colt Company produces two skateboard…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 20E

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Sales Needed to Earn Target Income Chillmax Company plans to sell 3,500 pairs of shoes at 60 each in the coming year. Variable cost is 35% of the sales price; contribution margin is 65% of the sales price. Total fixed cost equals 78,000 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the sales revenue that Chillmax must make to earn operating income of 81,900 by using the point in sales equation. 2. Check your answer by preparing a contribution margin income statement based on the sales dollars calculated in Requirement 1.
Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost for each follows: Their sales mix is reflected in the ratio 4:4:1. If annual fixed costs shared by the three products are $1 8840 how many units of each product will need to be sold in order forJj to break even?
Current Attempt in Progress Vaughn Manufacturing sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70 % (Q-Drive Plus) based upon quantity of units sold. Q-Drive has a unit variable cost of $120 and a selling price of $200. Q-Drive Plus has a unit variable cost of $110 and a unit selling price of $195. Vaughn's fixed costs are $1093500. How many units of Q-Drive would be sold at the break-even point? 13096 9167 3929 4160 Attempts: 0 of 1 used Submit Answer
FRANCORP sells two products. Products M N Selling price per unit $80 $60 Less variable expenses per unit $46 $40 Contribution margin per unit $34 $20 Current demand per week (units) 2,100 2,400 Processing time required on machine XYZ per unit 2 min. 1 min. Machine XYZ is a constrained resource and is being used at 100% capacity. Machine XYZ has a capacity of 3,000 minutes per week. Assuming FRANCORP wants to maximize its total contribution margin, how much of each product should it produce? a. 2400 units of N and 300 units of M b. 300 units of N and 2100 units of M c. 1200 units of N and 1050 units of M d. 2400 units of N and 0 units of M
eBook Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Selling Price Variable Cost Product per Unit per Unit Snowboards $330 $160 Skis $420 $240 Poles $40 $20 Their sales mix is reflected in the ratio 8:4:2. If annual fixed costs shared by the three products are $233,200. Determine the break-even point in sales dollars. Break-even point S
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FRANCORP sells two products. Products M N Selling price per unit $80 $60 Less variable expenses per unit $46 $40 Contribution margin per unit $34 $20 Current demand per week (units) 2,100 2,400 Processing time required on machine XYZ per unit 2 min. 1 min. Machine XYZ is a constrained resource and is being used at 100% capacity. Machine XYZ has a capacity of 3,000 minutes per week. Which product should FRANCORP focus on? a. Product N since it provides a contribution margin net benefit of $3 per minute b. Product N since it provides a contribution margin net benefit of $3.50 per minute c. Product M since it provides a contribution margin net benefit of $2.20 per minute d. Product M since it provides less contribution margin per minute
Problem 10. Bulac Corporation manufactures and sells two products – Bangus and Tupig. Current revenue, costs and sales data on the two products appear below. Bangus P400 Tupig P600 Selling price per unit Variable cost per unit Number of units sold monthly 240 120 200 units 300 units Fixed costs and expenses are P704,000 per month. Required: a. Average contribution margin ratio. b. Composite breakeven point in units and in pesos. c. Allocation of composite breakeven point in units. d. Assuming the company increases its fixed costs and expenses by P140,800, how many units of Bangus and Tupig should be sold at breakeven point? e. Refer to the original data, assuming the sales mix between Bangus and Tupig is 500 units for Bangus and 300 units for Tupig, what is the new combined breakeven point in units and in pesos? f. Consider the original data, except that Pangasinan Company based its sales mix in units. Determine the following: i. Average UCM. ii. Composite BEP in units and in pesos.
View Policies Current Attempt in Progress Sheridan Company sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus) based upon quantity of units sold. Q-Drive has a unit variable cost of $120 and a selling price of $210. Q-Drive Plus has a unit variable cost of $100 and a selling price of $180. The weighted-average unit contribution margin for Sheridan is O $87. O $105. O $210. O $83. Save for Later Attempts: 0 of 1 used Submit Answer
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QUESTION 1 Bock Ltd. makes 200 wooden kitchen chairs every month and sells them for GHe50 each. Fixed month overheads are GHe3.00 and thestandard cost of one chair is as follows: GHe Materials 15 Direct labour 8 Variable overheads 7 Required: 1.Calculate for one month 2. The variable cost of one chair b. the breaker en point 3. The profit if 200 chairs are sold 4. The number of chairs sold to give profit of GHe4,000

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