har Sales mix and break-even analysisMegan Company has fixed costs of $736,600. The unit selling price, variable cost per unit, and contribution margin per unit for the company's twoproducts follow:Product ModelSelling Price Variable Cost per UnitContribution Margin per UnitYankee$320$180$140Zoro22014080The sales mix for products Yankee and Zoro is 60% and 40%, respectively. Determine the break-even point in units of Yankee and Zoro.a. Product Model Yankeeb. Product Model Zoro☐ unitsunits

Step 1: Determine the Weighted Average Contribution Margin per unit by multiplying each product…

Answered: Sales mix and break-even analysis Megan…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5BE

See similar textbooks

Similar questions

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.
Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.
Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows: Their sales mix s reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $25,000 per year. What are total variable costs for Morris with their current product mix? Calculate the number of units of each product that will need to be sold in order for Morris to break even. What is their break-even point in sales dollars? Using an income statement format, prove that this is the break-even point.
Bobby Company has fixed costs of $160,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Contribution Margin Product Selling Price per Unit Variable Cost per Unit per Unit $180 $100 $80 Y 100 60 40 The sales mix for product X and Y is 60% and 40%, respectively. Deterrmine (a) the selling price for the overall product e (b) the variable cost per unit for the overall product e (c) the contribution margin for the overall product e (d) the break-even units for the overall product e (e) how many of product X would be sold at the break-even point (f) how may of product Y would be sold at the break-even point A- I !! of (a) the selling price for the overall product e I. (b) the variable cost per unit for the overall product e (c) the contribution margin for the overall product e (d) the break-even units for the overall producte (e) how many of product X would be sold at the break-even point 1500 (f) how may…
Megan Company has fixed costs of $1,673,280. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products follow: Product Model Selling Price Variable Cost per Unit Contribution Margin per Unit Yankee $900 $580 $320 Zoro 720 440 280 The sales mix for products Yankee and Zoro is 20% and 80%, respectively. Determine the break-even point in units of Yankee and Zoro.a. Product Model Yankee fill in the blank 1 of 2 unitsb. Product Model Zoro fill in the blank 2 of 2 units
Sales Mix and Break-Even Analysis Jordan Company has fixed costs of $1,097,400. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price Variable Cost per Unit Contribution Margin per Unit $560 $340 220 $220 120 340 The sales mix for products Q and 2 is 35% and 65%, respectively. Determine the break-even point in units of Q and Z. If required, round your answers to the nearest whole number. a. Product Q b. Product 2 units units
I need help solving this
Megan Company has fixed costs of $2,254,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $620 $340 $280 ZZ 800 520 280 The sales mix for Products QQ and ZZ is 60% and 40%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number.
Heyden Company has fixed costs of $733,950. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $330 $180 $150 ZZ 460 400 60 The sales mix for Products QQ and ZZ is 50% and 50%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product QQ fill in the blank 1 unitsb. Product ZZ fill in the blank 2 units
Sales Mix and Break-Even Analysis Olmstead Company has fixed costs of $1,071,360. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $400 $200 $200 550 470 80 The sales mix for Products QQ and ZZ is 40% and 60%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product QQ X units b. Product ZZ X units
Steven Company has fixed costs of $443,940. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Priceper unit Variable Cost per unit Contribution Marginper unit X $1,216 $456 $760 Y 710 380 330 The sales mix for products X and Y is 60% and 40% respectively. Determine the break-even point in units of X and Y combined. Round answer to nearest whole number.fill in the blank 1units
Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $599,400. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $460 $280 $180 ZZ 620 440 180 The sales mix for Products QQ and ZZ is 90% and 10%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product QQ units b. Product ZZ units

SEE MORE QUESTIONS

Recommended textbooks for you

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS