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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: Product Sales Price per Unit Variable Cost per Unit Model 101 $280      $180        Model 201 345      220        Model 301 395      250        The current product mix is 4:3:2. The three models share total fixed costs of $532,500. A. Calculate the sales price per composite unit. Sales price ?  per composite unit B. What is the contribution margin per composite unit? Contribution margin ? per composite unit C. Calculate Manatoah’s break-even point in both dollars and units. Break-even point in dollars ? Break-even point in units ? unit D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0". Income Statement Sales   Model 101   Model 201   Model 301   Total Sales   Variable Costs   Model 101   Model 201   Model 301   Total Variable Costs   Contribution Margin   Fixed Costs   Net Income

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: Product Sales Price per Unit Variable Cost per Unit Model 101 $280      $180        Model 201 345      220        Model 301 395      250        The current product mix is 4:3:2. The three models share total fixed costs of $532,500. A. Calculate the sales price per composite unit. Sales price ?  per composite unit B. What is the contribution margin per composite unit? Contribution margin ? per composite unit C. Calculate Manatoah’s break-even point in both dollars and units. Break-even point in dollars ? Break-even point in units ? unit D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0". Income Statement Sales   Model 101   Model 201   Model 301   Total Sales   Variable Costs   Model 101   Model 201   Model 301   Total Variable Costs   Contribution Margin   Fixed Costs   Net Income

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7PA: Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model...
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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:

Product Sales Price
per Unit		 Variable Cost
per Unit
Model 101 $280      $180       
Model 201 345      220       
Model 301 395      250       

The current product mix is 4:3:2. The three models share total fixed costs of $532,500.

A. Calculate the sales price per composite unit.

Sales price ?  per composite unit

B. What is the contribution margin per composite unit?

Contribution margin ? per composite unit

C. Calculate Manatoah’s break-even point in both dollars and units.

Break-even point in dollars ?

Break-even point in units ? unit

D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0".

Income Statement
Sales  
Model 101  
Model 201  
Model 301  
Total Sales  
Variable Costs  
Model 101  
Model 201  
Model 301  
Total Variable Costs  
Contribution Margin  
Fixed Costs  
Net Income  

 

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: Sales Price Variable Cost Product per Unit per Unit Model 101 $280 $180 Model 201 345 220 Model 301 395 250 The current product mix is 4:3:2. The three models share total fixed costs of $532,500. A. Calculate the sales price per composite unit. Sales price $ 2,945 per composite unit B. What is the contribution margin per composite unit? Contribution margin $ 1,065 V per composite unit C. Calculate Manatoah's break-even point in both dollars and units. Break-even point in dollars $ Break-even point in units units
Transcribed Image Text: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: Sales Price Variable Cost Product per Unit per Unit Model 101 $280 $180 Model 201 345 220 Model 301 395 250 The current product mix is 4:3:2. The three models share total fixed costs of $532,500. A. Calculate the sales price per composite unit. Sales price $ 2,945 per composite unit B. What is the contribution margin per composite unit? Contribution margin $ 1,065 V per composite unit C. Calculate Manatoah's break-even point in both dollars and units. Break-even point in dollars $ Break-even point in units units
D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0". Income Statement Sales Model 101 Model 201 Model 301 Total Sales Variable Costs Model 101 Model 201 Model 301 Total Variable Costs $ Contribution Margin $ Fixed Costs Net Income
Transcribed Image Text:D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0". Income Statement Sales Model 101 Model 201 Model 301 Total Sales Variable Costs Model 101 Model 201 Model 301 Total Variable Costs $ Contribution Margin $ Fixed Costs Net Income
Expert Solution
Step 1
Product Sales Price
per Unit		 Variable Cost
per Unit		 Sales Mix
Model 101 $280   $180   4
Model 201 345   220   3
Model 301 395   250   2
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