Biblio Files Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Basic and Deluxe. The company has compiled the following estimates for the new product offerings. Type of Bookshelf Sales Price per Unit Variable Cost per Unit Basic $5.00   $1.75   Deluxe 9.00   8.10   The company is interested in determining how many of each type of bookshelf would have to be sold in order to break even. If we think of the Basic and Deluxe products as components of one overall enterprise product called “Combined,” the unit contribution margin for the Combined product would be $2.31. Fixed costs for the upcoming year are estimated at $334,950. Recall that the totals of all the sales mix percents must be 100%. Determine the amounts to complete the following table. Type of Bookshelf Percent of Sales Mix Break-Even Sales in Units Break-Even Sales in Dollars Basic %   $ Deluxe %   $

3. An electronic buyer needs a retail value of $55,000 in cell phones for the holiday season. If a markup of 60% is desired and the merchandise in stock already totals $22,3000 at retail and $9,875 at cost, what markup percentage will the buyer need to attain on the remaining purchases in order to achieve the desired 60% markup for the assortment? Total needs Purchases Balance Retail Cost Markup %

M3

Eddie’s Galleria sells billiard tables. The company has the following purchases and sales for 2021. Date Transactions Units Unit Cost Total Cost January 1 Beginning inventory 150 $540 $ 81,000 March 8 Purchase 120 570 68,400 August 22 Purchase 100 600 60,000 October 29 Purchase 80 640 51,200     450   $260,600 Jan. 1–Dec. 31 Sales ($700 each) 400     Eddie is worried about the company’s financial performance. He has noticed an increase in the purchase cost of billiard tables, but at the same time, competition from other billiard table stores and other entertainment choices have prevented him from increasing the sales price. Eddie is worried that if the company’s profitability is too low, stockholders will demand he be replaced. Eddie does not want to lose his job. Since 60 of the 400 billiard tables sold have not yet been picked up by the customers as of December 31, 2021, Eddie decides incorrectly to include these tables in ending inventory. He appropriately includes…