Please do not give solution in image format thanku OHandy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $390 and of each door is$880. The variable cost of each window is $220 and of each door is $540. Fixed costs are $1,203,600.(1) Compute the weighted-average contribution margin.100Sales mix80%20%WindowsDoorsNumerator:(2) Compute the break-even point in units using the weighted-average contribution margin.Denominator:Weighted-average contribution margin per unitTotal fixed costs$Contribution margin71,203,600 1WindowsDoorsTotalWeighted-average contribution margin(3) Compute the number of units of each product that will be sold at the break-even point.Sales mixNumber of units to break evenTotal per unitBreak Even UnitsBreak Even Units0SeUnit sales atbreak-even point+

The break-even point is reached when the revenue from sales exactly matches the total production and…

Answered: Handy Home sells windows (80% of sales)…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2CE

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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.
Helpful Hardware sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $580 and of each door is $1,180. The variable cost of each window is $385 and of each door is $880. Fixed costs are $1,737,720. The weighted-average contribution margin is: Multiple Choice O $495. $264. $174. $351. $216.
Handy Home sells windows (60% of sales) and doors (40% of sales). The selling price of each window is $220 and of each door is $540. The variable cost of each window is $135 and of each door is $370. Fixed costs are $600,950. S (1) Compute the weighted-average contribution margin. Sales mix Windows Doors Contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin. Numerator: Denominator: 7 Windows Doors Total Weighted-average contribution margin (3) Compute the number of units of each product that will be sold at the break-even point. Sales mix Number of units to break even. = Total per unit Break Even Units Break Even Units Unit sales at break-even point
Best Windows is a small company that installs windows. Its cost structure is as follows: Selling price from each window installation Variable cost of each window installation Annual fixed costs $ $ $ 160,000 Use (a) the equation method and (b) the contribution method to calculate operating income if Best installs 4,000 windows. Use (a) the Equation method to calculate operating income if Best installs 4,000 windows. Begin by determining the formula to calculate the operating income using the equation method. Then, calculate the operating income. (Abbreviation used: FC = Fixed costs, SP = Selling price, VCU = Variable cost per unit, Q = Quantity of units sold.) X X )-( )-( X X 700 600 X = Operating income = Next, use (b) the contribution method to calculate operating income if Best installs 4,000 windows. Begin by determining the formula to calculate the operating income using the contribution method. Then, calculate the operating income. = Operating income
A jeans maker is designing a new line of jeans called Slams. Slams will sell for $320 per unit and cost $220.80 per unit in variable costs to make. Fixed costs total $65,500. (Round your answers to 2 decimal places.) 1. Compute the contribution margin per unit. Contribution margin 2. Compute the contribution margin ratio. Numerator: Denominator: Contribution Margin Ratio %3D Contribution margin ratio %3D 3. Compute income if 6,100 units are produced and sold Income
Required: Juniper Enterprises sells handmade clocks. Its variable cost per clock is $6.80, and each clock sells for $17. Calculate Juniper’s contribution margin per unit and contribution margin ratio. If the company’s fixed costs total $8,058, determine how many clocks Juniper must sell to break even. Note: Round your "Unit Contribution Margin" answer to 2 decimal places.
Red Hawk Enterprises sells handmade clocks. Its variable cost per clock is $6.50, and each clock sells for $16.00. Required: Calculate Red Hawk's unit contribution margin. Calculate Red Hawk's contribution margin ratio. Suppose Red Hawk sells 2,050 clocks this year. Calculate the total contribution margin. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Suppose Red Hawk sells 2,050 clocks this year. Calculate the total contribution margin. Note: Round your answers to 2 decimal places.
4. XYZ Company manufactures GPS. The selling price of each GPS is $150,variable cost $24, and fixed costs are $1,635,000. Calculate the following:a) contribution marginb) breakeven point in units
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Sabrina Inc. sells table for $110. The unit variable cost per table is $85. Fixed costs total $475,000. Required: a What is the contribution margin per table? b. What is the breakeven point in table? C. How many table must be sold to earn a pretax income of $450 000? d. What is the margin of safety, assuming 33 000 tires are sold?
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