Multiple-Product Break-even, Break-Even Sales RevenueAndrews Sporting Goods, Inc., produces and sells children's softball mitts: vinyl mitts and basic leather mitts. Last year, Andrews sold 24,000 vinyl mitts and 12,000leather mitts. Information on the two products is as follows:Vinyl Mitts Leather MittsPrice$10$16Variable cost per unit610Total fixed cost is $93,500.Required: (Round break-even packages to four significant digits and break-even units to the nearest whole unit.)Download Excel spreadsheet<1. What is the sales mix of vinyl mitts and leather mitts?2. Compute the break-even quantity of each product.The break-even quantity for vinyl mitts isThe break-even quantity for leather mitts is

CVP analysis is used to identify the changes in costs and volume affect a company's operating…

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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

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Problem 20E

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Instructions Multiple-Product Break-even, Break-Even Sales Revenue Andrews Sporting Goods, Inc., produces and sells children's softball mitts: vinyl mitts and basic leather mitts. Last year, Andrews sold 24,000 vinyl mitts and 12,000 leather mitts. Information on the two products is as follows: Vinyl Mitts Leather Mitts $16 Price Variable cost per unit Total fixed cost is $91,200. $10 6 10 Suppose that in the coming year, the company plans to produce an autographed mitt. The company estimates that 6,000 autographed mitts can be sold at a price of $19 and a variable cost per unit of $9. Total fixed cost must be increased by $30,400 (making total fixed cost $121,600). Assume that anticipated sales of the other products, as well as their prices and variable costs, remain the same. X 1. What is the sales mix of vinyl mitts, leather mitts, and autographed mitts? 2:1:4 X
S Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Weedban $ 6.00 $2.40 $ 45,000 Product Greengrow $ 7.50 $5.25 $ 21,000 Last year the company produced and sold 15,000 units of Weedban and 28,000 units of Greengrow. Its annual common fixed expenses are $33,000. Prev Required: Prepare a contribution format income statement segmented by product lines. Total Company 1 of 4 Product Line Weedban Greengrow Next >
Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 DVDs and 4,500 equipment sets. Information on the two products is as follows: DVDs Equipment Sets Price $8 $25 Variable cost per unit 4 15 Total fixed cost is $84,920. Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale to health clubs. The company estimates that 9,000 mats can be sold at a price of $15 and a variable cost per unit of $9. Total fixed cost must be increased by $28,980 (making total fixed cost $113,900). Assume that anticipated sales of the other products, as well as their prices and variable costs, remain the same. Unless otherwise instructed, round all total dollar figures (e.g., sales, total contribution margin) to the nearest dollar, breakeven or target units to the…
Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 DVDs and 4,500 equipment sets. Information on the two products is as follows: DVDs Equipment Sets Price $8 $25 Variable cost per unit 4 15 Total fixed cost is $84,920. Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale to health clubs. The company estimates that 9,000 mats can be sold at a price of $15 and a variable cost per unit of $9. Total fixed cost must be increased by $28,980 (making total fixed cost $113,900). Assume that anticipated sales of the other products, as well as their prices and variable costs, remain the same. Unless otherwise instructed, round all total dollar figures (e.g., sales, total contribution margin) to the nearest dollar, breakeven or target units to the…
Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDS and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 DVDs and 4,500 equipment sets. Information on the two products is as follows: Price DVDs Equipment Sets $8 $25 Variable cost per unit Total fixed cost is $76,250. 15 Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale to health clubs. The company estimates that 9,000 mats can be sold at price of $17 and a variable cost per unit of $11. Total fixed cost must be increased by $25,410 (making total fixed cost $101,660). Assume that anticipated sales of the other products, as well as their prices and variable costs, remain the same. Part 1: Sales Mix Instructions and Part 2: Break-Even 1. What is the sales mix of DVDs, equipment sets, and yoga mats? 3:112 2. Compute the break-even quantity of each product.…
Royal Lawncare Company produces and sells two packaged products—Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow Selling price per unit $ 6.00 $ 7.50 Variable expenses per unit $ 2.40 $ 5.25 Traceable fixed expenses per year $ 45,000 $ 21,000 Last year the company produced and sold 15,000 units of Weedban and 28,000 units of Greengrow. Its annual common fixed expenses are $33,000. Required: Prepare a contribution format income statement segmented by product lines.
Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 DVDs and 4,500 equipment sets. Information on the two products is as follows: DVDs Equipment Sets Price $8 $25 Variable cost per unit 4 15 Total fixed cost is $84,660. Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale to health clubs. The company estimates that 9,000 mats can be sold at a price of $17 and a variable cost per unit of $11. Total fixed cost must be increased by $28,220 (making total fixed cost $112,880). Assume that anticipated sales of the other products, as well as their prices and variable costs, remain the same. 1. What is the sales mix of DVDs, equipment sets, and yoga mats?3:1:2 2. Compute the break-even quantity of each product. Break-even DVDs…
Royal Lawncare Company produces and selts two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow Product Weedban $ 11.00 $ 2.30 $ 131,000 Greengrow Selling price per unit Varlable expenses per unit Traceable fixed expenses per year $ 35.00 $ 12.00 $ 41,000 Last year the company produced and sold 35,500 units of Weedban ond 23,000 units of Greengrow Its annual common fixed expenses are $96,000 Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Company Weedban Greengrow
Royal Lawncare Company produces and sells two packaged products- Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow Selling price per unit $ 11.00 $ 37.00 Variable expenses per unit $ 2.70 $ 10.00 Traceable fixed expenses per year. $ 134,000 $ 31,000 Last year the company produced and sold 39, 500 units of Weedban and 15, 500 units of Greengrow. Its annual common fixed expenses are $98,000. Required: Prepare a contribution format income statement segmented by product lines.
Good afternoon Please answer d i,ii Scent Fragrance Company manufactures and sells several ranges of perfumes. The Average revenue and cost of sales are as follows: Selling price per unit $20.00 Variable costs per unit: Direct materials $4.00 Direct manufacturing labor $1.60 Manufacturing overhead $0.40 Selling costs $2.00 Annual fixed costs $96,000 a) Calculate the contribution margin per unit. b) Calculate the number of units Scent Fragrance Company must sell each year to break even. c) Calculate the number of units Scent Fragrance Company must sell to yield a profit of$144,000. d) Managers may use Sensitivity analysis in their accounting system. i) What is sensitivity analysis? ii) How is Sensitivity analysis useful to managers?
Problem 1: The Suffolk Sock Company buys socks for $6 per pair and sells them for $10. The fixed costs are $10,000. Required: Compute the company’s breakeven point in units Compute the company’s breakeven point in sales dollars Compute the monthly sales in units required to earn a target operating income of $6,000.
Fis-Kla CVBA sells a single product in Georgia for $792. Variable costs are 59% of the selling price, and the company has fixed costs that amount to $305,112. Current sales total 18,426 units. Each unit that Fis-Kla sells will increase profit by, to the nearest dollar: Select one: A. $451 B. $325 C. $467 D. $308 E. $10

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