Bonita Industries has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Bonita incurs $6012500 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. The break-even point in dollars is $15031250. $2224625. $13982558. $16250000.

Bonita Industries has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Bonita incurs $6012500 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. The break-even point in dollars is $15031250. $2224625. $13982558. $16250000.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 58P: Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and...

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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.
Swifty Corporation has two divisions; Sporting Goods and Sports Gear. The sales mix is 70% for Sporting Goods and 30% for Sports Gear, as determind by total sales dollars. Swifty incurs $7800000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 60%. The break-even point in dollars is? a.$2574000. b.$15294118. c.$13000000. d.$20000000.
Sheffield Corp. has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Sheffield incurs $7770000 in fixed costs. The contribution margin ratio for Sporting Goods is 30% , while for Sports Gear it is 50%. What will be the total contribution margin at the break-even point? $6685814. $9030000. O $7840000. O $7770000.
Coronado Industries has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Coronado incurs $5550000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. What will sales be for the Sporting Goods Division at the break-even point? $4500000. $5250000. $8389535. $9750000.
Sunland Company has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Sunland incurs $7492500 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. What will be the total contribution margin at the break-even point? $6447035. $8707500. $7492500. $7560000.
Bonita Industries has two divisions; Sporting Goods and Sports Gear. The sales mix is 75% for Sporting Goods and 25% for Sports Gear, as determined by total sales dollars. Bonita incurs $9500000 in fixed costs. The contribution margin ratio for Sporting Goods is 40%, while for Sports Gear it is 70%. What will sales revenue be for the Sporting Goods Division at the break-even point? $11400000 $14843750 $8000000 O $5000000
Swifty Corporation has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Swifty incurs $6810000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. The weighted-average contribution margin ratio is 50%. 40%. 37%. 43%.
Bonita Industries has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Bonita incurs $5365000 in fixed costs. The contribution margin ratio for Sporting Goods is 30 % , while for Sports Gear it is 50%. What will sales be for the Sporting Goods Division at the break-even point? O $8109884 O $5075000 O $9425000. O $4350000.
Swanson Company has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Swanson incurs $6,660,000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. The break-even point in dollars is Group of answer choices $2,464,200. $18,000,000. $15,488,373. $16,650,000.
Bramble Corp. has two divisions; Sporting Goods and Sports Gear. The sales mix is 70 % for Sporting Goods and 30% for Sports Gear. Bramble incurs $6880000 in fixed costs. The contribution margin ratio for Sporting Goods is 30 % , while for Sports Gear it is 50%. The weighted-average contribution margin ratio is 60%. 36% O 44%. O 40%.
Vaughn Manufacturing has two divisions; Sporting Goods and Sports Gear. The sales mix is 75% for Sporting Goods and 25% for Sports Gear. Vaughn incurs $6890000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. The weighted-average contribution margin ratio is 70%. 35%. 40%. 45%.
Oriole Industries production division reported a net operating loss of $516000 in 2021. Included in that amount were common fixed corporate expenses of $734000 that were allocated to divisions based on segment gross profit. The division's segment margin was O $218000. O ($218000). O $516000. O ($516000).