Drayton Windows plans to sell two different brands of windows-Chad and Musk-and budgets the following: (Click the icon to view the budgets.) Calculate the breakeven point for Drayton Windows in terms of (a) the number of units sold and (b) revenues. Begin by determining the sales mix. (The windows can only be sold in whole units. Enter the ratios as whole numbers.) A budgeted sales mix of 3,900 units of Chad Windows sold for every is a ratio of 3: 1. That is, we think of Drayton Windows selling a bundle of 1 unit(s) of Musk Windows. Next, calculate the contribution margin of the bundle. Number of Units of Chad Windows and Musk Windows in Each Bundle Chad Windows Musk Windows Total Contribution Margin per unit for Chad Windows and Musk Windows Data table Contribution Margin of the Bundle C Expected sales Revenues, $600 and $250 per unit Variable costs, $550 and $200 per unit Contribution margin, $50 and $50 per unit Fixed costs Operating income Chad Windows 3,900 $ 1,300 units of Musk Windows sold, $ 3 units of Chad Windows and Musk Windows 2,340,000 $ 2,145,000 195,000 $ Total 1,300 325,000 $2,665,000 260,000 2,405,000 65,000 5,200 260,000 160,000 $ 100,000 X Check answer

Drayton Windows plans to sell two different brands of windows-Chad and Musk-and budgets the following: (Click the icon to view the budgets.) Calculate the breakeven point for Drayton Windows in terms of (a) the number of units sold and (b) revenues. Begin by determining the sales mix. (The windows can only be sold in whole units. Enter the ratios as whole numbers.) A budgeted sales mix of 3,900 units of Chad Windows sold for every is a ratio of 3: 1. That is, we think of Drayton Windows selling a bundle of 1 unit(s) of Musk Windows. Next, calculate the contribution margin of the bundle. Number of Units of Chad Windows and Musk Windows in Each Bundle Chad Windows Musk Windows Total Contribution Margin per unit for Chad Windows and Musk Windows Data table Contribution Margin of the Bundle C Expected sales Revenues, $600 and $250 per unit Variable costs, $550 and $200 per unit Contribution margin, $50 and $50 per unit Fixed costs Operating income Chad Windows 3,900 $ 1,300 units of Musk Windows sold, $ 3 units of Chad Windows and Musk Windows 2,340,000 $ 2,145,000 195,000 $ Total 1,300 325,000 $2,665,000 260,000 2,405,000 65,000 5,200 260,000 160,000 $ 100,000 X Check answer

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Budgeted unit sales 34,000 54,000 27,000 54,000 Each T-shirt is expected to sell for $18. The purchasing manager buys the T-shirts for $7 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 28 percent of the next quarter’s sales demand. Selling and administrative expenses are budgeted at $68,000 per quarter plus 14 percent of total sales revenue. Required:. Determine budgeted cost of merchandise purchased for quarters 1, 2, and 3.. Determine budgeted cost of good sold for quarters 1, 2, and 3.. Determine selling and administrative expenses for quarters 1, 2, and 3.. Complete the budgeted income statement for quarters 1, 2, and 3.
Oriole Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2020. 1. Sales: quarter 1, 28,400 bags; quarter 2, 44,000 bags. Selling price is $62 per bag. 2. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3.80 per pound and 6 pounds of Tarr at $1.50 per pound. 3. Desired inventory levels: Type of Inventory January 1 April 1 July 1 Snare (bags) 8,100 12,500 18,300 Gumm (pounds) 9,100 10,400 13,100 Tarr (pounds) 14,300 20,200 25,400 4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour. 5. Selling and administrative expenses are expected to be 15% of sales plus $180,000 per quarter. 6. Interest expense is $100,000. 7. Income taxes are expected to be 30% of income before income taxes. Your assistant has prepared two budgets: (1)…
[The following information applies to the questions displayedbelow.]We discuss how budgeting for a merchandiser is different thanbudgeting for a manufacturer. Merchandising firms prepare amerchandise purchases budget instead of a production budget. Allof the other budgets prepared by a merchandiser are similar tothose of a manufacturing firm. Knowledge Check 01Cobra, Inc., a sporting goods retailer, estimates to sell 50,000 units in the nextquarter. The beginning inventory is 4,000 units and ending inventory is estimated tobe 20 percent of estimated sales. How many units should be purchased?
Scholar Suppliers manufactures backpacks for students. The backpacks come in two sizes: Small, and Large. Scholar Suppliers anticipates the following sales volumes and prices for the coming period: Size Sales Volume Selling Price Small 3,000 backpacks $25 each Large 6,000 backpacks $75 each What is the budgeted level of revenue for the coming period?
Margot's Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and operating data for the current year follow: Flavor Gallons Budgeted Data Selling Price per Gallon Actual Operating Results Vanilla 324,000 $ 1.95 Variable Costs per Gallon $ 1.25 Selling Price per Variable Costs per Gallons Gallon Gallon 264,000 $ 1.80 $ 1.15 Chocolate 405,000 2.90 2.00 375,000 2.75 1.90 Strawberry Anchovy 270,000 2.50 1.40 400,000 2.70 1.45 81,000 3.90 2.40 201,000 4.40 2.60 Required: 1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and do not round intermediate calculations.) a. b. C. Flavor Sales Volume Variance Sales Mix Variance Sales Quantity Variance Vanilla Chocolate Strawberry Unfavorable Unfavorable Favorable Unfavorable Favorable Unfavorable Favorable Favorable Favorable Anchovy Favorable Favorable Favorable Total Favorable Favorable Favorable
Ss.
please answer this with must explanation , computation , for each steps and each parts answer in text form
4. What is the dollar value of budgeted soap purchases? Round calculations to a level that makes sense for situation
Please help me with show all calculation thanku and all answers
Vaughn Chemicals has developed a new window cleaner that requires two ingredients, AM972 and CA38. Based on forecasted sales, Vaughn has developed the following budgeted production for the coming year. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st QuarterNext Year Forecasted production (gallons) 5,000 7,000 9,000 12,500 6,000 Each gallon of window cleaner requires 100 ounces of AM972 and 28 ounces of CA38. An ounce of AM972 costs Vaughn $0.15. An ounce of CA38 costs the company $0.25. Vaughn's inventory policy requires ending inventory equal to 20% of the next quarter's production needs. At the beginning of the year, Vaughn expects to have 80,000 ounces of AM972 and 30,000 ounces of CA38 on hand.Prepare Vaughn's AM972 purchases budget for the coming year. (Enter price per ounce to 2 decimal places, e.g. 0.35.) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual select an opening purchase…
Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: Selling price per unit Variable expense per unit Fixed expense per month Unit sales per month $ 30 $ 12 $ 15,840 1,030 Required: 1. What is the company's margin of safety? Note: Do not round Intermediate calculations. 2. What is the company's margin of safety as a percentage of its sales? Note: Round your percentage answer to 2 decimal places (1.e. .1234 should be entered as 12.34). 1. Margin of safety (in dollars) 2. Margin of safety percentage %6
Based on the information is given, show the calculation step by step;a) PREPARE the following budgets:i. Sales Budget, ii. Production Budget, iii. Direct Material Usage Budget, iv. Direct Material Purchase Budget and v. Direct Labour Budge