Gerin Company can produce two types of lamps, the Enlightner and Foglighter. The data on the two lamp models are as follows Enlightner 900 Foglighter 500 $ 357 $ 495 297 238 $ 119 $ 198 Sales volume in units Unit sales price Unit variable cost Unit contribution margin It takes one machine hour to produce each product. Total fixed costs for the manufacture of both products are $109,000. Demand is high enough for either product to keep the plant operating at maximum capacity Assuming that sales mix in terms of units remains constant, what is the breakeven point in total units? Multiple Choice O 717. 1,036 975

Gerin Company can produce two types of lamps, the Enlightner and Foglighter. The data on the two lamp models are as follows Enlightner 900 Foglighter 500 $ 357 $ 495 297 238 $ 119 $ 198 Sales volume in units Unit sales price Unit variable cost Unit contribution margin It takes one machine hour to produce each product. Total fixed costs for the manufacture of both products are $109,000. Demand is high enough for either product to keep the plant operating at maximum capacity Assuming that sales mix in terms of units remains constant, what is the breakeven point in total units? Multiple Choice O 717. 1,036 975

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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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: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.
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Oat Treats manufactures various types of cereal bars featuring oats. Simmons Cereal Company has approached Oat Treats with a proposal to sell the company its top selling oat cereal bar at a price of $27,500 for 20,000 bars. The costs shown are associated with production of 20,000 oat bars currently. The manufacturing overhead consists of $3,000 of variable costs with the balance being allocated to fixed costs. Should Oat Treats make or buy the oat bars?
Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided, If Reuben accepts the offer, what will the effect on profit be?
Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Their sales mix is reflected in the ratio 7:3:2. If annual fixed costs shared by the three products are $196,200, how many units of each product will need to be sold in order for Salvador to break even?
Zang Co. has the option to either further process product Alpha to produce Product Zeta. The selling price of product Alpha is $36 per unit and it costs $23 to produce each unit of product Alpha. Product Zeta would be sold for $55 and would require an additional $25 cost for production. What is the differential cost to produce product Zeta? a. $25 per unit b. $20 per unit unit с. $23 per d. $2 per unit
Crown Co. can produce two types of lamps, the Enlightner and Foglighter. The data on the two lamp models are as follows: Enlightner Foglighter Sales volume in units 500 400 Unit sales price $300 $400 Unit variable cost 200 240 Unit contribution margin $100 $160 It takes one machine hour to produce each product. Total fixed costs for the manufacture of both products are $90,000. Demand is high enough for either product to keep the plant operating at maximum capacity. Assuming that sales mix in terms of dollars remains constant, what is the breakeven point in dollars? (Round intermediate calculations to 4 decimal places and final answer up to the nearest whole number.)
Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows: Sales volume in units Brighter 400 Cleaner 600 Unit sales price Unit variable cost $ 1,000 $ 1,000 200 700 The number of machine hours to produce one unit of Brighter is 1, while the number of machine hours for each unit of Cleaner is 2. Total fixed costs for the manufacture of both products are $310,000. Required: 1. Determine the breakeven point in total units for Smith Company, based on the assumption that the sales mix (on the basis of relative sales volume in units) remains constant. Use the weighted-average contribution margin approach. 2. At this breakeven level, how many units of each product must be sold? Due to rounding, the total breakeven units for Requirement 2 may differ slightly than in Requirement 1. 3. Using the Indirect approach, what is the overall breakeven point in sales dollars? Use the breakeven units computed in Requirement 1. Complete this…
Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows: Sales volume in units Brighter 400 Cleaner 600 Unit sales price Unit variable cost $ 1,000 200 $ 1,000 700 The number of machine hours to produce one unit of Brighter is 1, while the number of machine hours for each unit of Cleaner is 2. Total fixed costs for the manufacture of both products are $270,000. Required: 1. Determine the breakeven point in total units for Smith Company, based on the assumption that the sales mix (on the basis of relative sales volume in units) remains constant. Use the weighted-average contribution margin approach. 2. At this breakeven level, how many units of each product must be sold? Due to rounding, the total breakeven units for Requirement 2 may differ slightly than in Requirement 1. 3. Using the Indirect approach, what is the overall breakeven point in sales dollars? Use the breakeven units computed in Requirement 1. Complete this…
Zang Co. has the option to either further process product Alpha to produce Product Zeta. The selling price of product Alpha is $36 per unit and it costs $23 to produce each unit of product Alpha. Product Zeta would be sold for $55 and would require an additional $25 cost for production. What is the differential cost to produce product Zeta? a. $25 per unit b. $20 per unit c. $23 per unit d. $2 per unit
Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows: Sales volume in units Brighter 400 Cleaner 600 Unit sales price Unit variable cost $ 1,000 200 $ 1,000 700 The number of machine hours to produce one unit of Brighter is 1, while the number of machine hours for each unit of Cleaner is 2. Total fixed costs for the manufacture of both products are $290,000. Required: 1. Determine the breakeven point in total units for Smith Company, based on the assumption that the sales mix (on the basis of relative sales volume in units) remains constant. Use the weighted-average contribution margin approach. 2. At this breakeven level, how many units of each product must be sold? Due to rounding, the total breakeven units for Requirement 2 may differ slightly than in Requirement 1. 3. Using the Indirect approach, what is the overall breakeven point in sales dollars? Use the breakeven units computed in Requirement 1. Complete this…
Zang Co. has the option to either further process product Alpha to produce Product Zeta. The selling price of product Alpha is $36 per unit and it costs $23 to produce each unit of product Alpha. Product Zeta would be sold for $55 and would require an additional $25 cost for production. What is the differential cost to produce product Zeta? a. $25 per unit b. $20 per unit c. $23 per unit d. $2 per unit а. с.