FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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1. Containers International decides to sell Small containers only, calculate the break-even point in units.

 

2. Calculate the total weighted average contribution margin per unit if Containers International sells its products based on the sales mix of 70% Large containers and 30% Small containers.

 

3. Based on the sales mix of 70% Large containers and 30% Small containers, calculate the total number of units for Containers International to break even.

 

4. If variable costs rise by 10%, calculate the breakeven point in units, assuming Containers International sells only the Small container

Containers International produces two types of shipping containers Small and Large. The following
information is available related to each product:
Small
Large
$2,600
$3,600
Sales price per unit
Variable costs per unit
$600
$800
The Large containers account for 70% of total product sales and the Small container accounts for
the rest.
Containers International's fixed costs are rent ($100,000) and salaries ($470,000).
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Transcribed Image Text:Containers International produces two types of shipping containers Small and Large. The following information is available related to each product: Small Large $2,600 $3,600 Sales price per unit Variable costs per unit $600 $800 The Large containers account for 70% of total product sales and the Small container accounts for the rest. Containers International's fixed costs are rent ($100,000) and salaries ($470,000).
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