Krispies Ltd manufactures and sells three products which have the following revenue and costs per unit: Snap Crackle Pop Selling price per unit snap: R15 crackle: R20 pop: R12 Variable cost per unit snap: R10 crackle:1R3 pop: R6 Fixed cost per unit snap: R2 crackle: R3 pop: R2 Unit fixed costs are based on the following sales volumes: Snap – 15 000 units Crackle – 12 000 units Pop – 30 000 units Required: Calculate the aggregate break‐even units and sales for Krispies Ltd. Round to two decimals.

Krispies Ltd manufactures and sells three products which have the following revenue and costs per unit: Snap Crackle Pop Selling price per unit snap: R15 crackle: R20 pop: R12 Variable cost per unit snap: R10 crackle:1R3 pop: R6 Fixed cost per unit snap: R2 crackle: R3 pop: R2 Unit fixed costs are based on the following sales volumes: Snap – 15 000 units Crackle – 12 000 units Pop – 30 000 units Required: Calculate the aggregate break‐even units and sales for Krispies Ltd. Round to two decimals.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6PA: Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit...

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Krispies Ltd manufactures and sells three products which have the following revenue and costs per unit: Snap Crackle Pop R R Selling price per unit 15 20 12 Variable cost per unit 10 13 6 Fixed cost per unit Unit fixed costs are based on the following sales volumes: Snap -– 15 000 units Crackle – 12 000 units Pop – 30 000 units Required: Calculate the aggregate break-even units and sales for Krispies Ltd. Round to two decimals.
The XYZ Company produces and sells two products: The Riffs and The Raffs. Below is revenue and cost information to facilitate the development of a basic segmented income statement. Product Riffs Raffs Sales Price per unit $8.00 6.00 Variable Cost per unit $3.20 3.00 Traceable Fixed Costs $62,000 $44,000 It is expected that the company will incur $21,000 of common fixed expenses and unit sales are expected to be 12,000 of Riffs and 18,000 of Raffs. Required: Construct a Contribution Format Income Statement segmented by product line and company total.
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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: Product Sales Priceper Unit Variable Costper Unit Model 101 $275 $185 Model 201 355 220 Model 301 405 240 The current product mix is 4:3:2. The three models share total fixed costs of $328,500. A. Calculate the sales price per composite unit. Sales price $fill in the blank 363349fb9022017_1 per composite unit B. What is the contribution margin per composite unit? Contribution margin $fill in the blank 363349fb9022017_2 per composite unit C. Calculate Manatoah’s break-even point in both dollars and units. Break-even point in dollars $fill in the blank 363349fb9022017_3 Break-even point in units fill in the blank 363349fb9022017_4 units D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0".…
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A Product B C $ 90.00 $ 52.00 $ 80.00 27.00 15.00 12.00 27.00 24.00 40.00 54.00 $ 36.00 40% 39.00 $ 13.00 52.00 $ 28.00 25% 35% The company estimates that it can sell 800 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,000 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,000 pounds of materials? Answer is complete but not entirely correct. Complete this…
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