The Matrix Company has three product lines of belts-A, B, and C-with contribution margins of $7, $5, and $4, respectively. The president foresees sales of 400,000 units in the coming period, consisting of 40,000 units of A, 200,000 units of B, and 160,000 units of C. The company's fixed costs for the period are $1,020,000. Assuming that the product mix is unchanged, how many units of Product A will be sold to breakeven? Answer:
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- The J&J Company has three product lines ofbelts—A, B, and C—having contribution margins of$3, $2, and $1, respectively. The president foreseessales up to 200,000 units in the coming period, consisting of 20,000 units of A, 100,000 units of B, and80,000 units of C. The company’s fixed costs for theperiod are $255,000.(a) What is the company’s break-even point inunits, assuming that the given sales mix ismaintained?(b) If the mix is maintained, what is the total contribution margin when 200,000 units are sold?What is the operating income?(c) What would the operating income become if20,000 units of A, 80,000 units of B, and 100,000units of C were sold? What is the new break-evenpoint in units if these relationships persist in thenext period?The Ronowski Company has three product lines of belts—A, B, and C— with contribution margins of $3, $2, and $1, respectively. The president foresees sales of 200,000 units in the coming period, consisting of 20,000 units of A, 100,000 units of B, and 80,000 units of C. The company’s fixed costs for the period are $255,000. Q1. What is the company’s breakeven point in units, assuming that the given sales mix is maintained?The Austin Electric Company has three product lines of surge protectors commonly used in PC and other electronic devices - A, B, and C-having a contribution margin of $3, $2, and $1, respectively. The president foresees sales of 200.000 units in the coming pe riod, consisting of 200,000 units of A, 100,000 units of B, and 80.000 units of C. The company's fixed costs for the period are $255.000.(a) What is the company's break-even point in units. assuming that the given sales mix is maintained? (b) If the mix is maintained, what is the total contribution margin when 200,000 units are sold? What is operating income?(c) What would be operating income if 20,000 units of A,80,000 units of B, and 100,000 units of C were sold? What is the new break-even point in units if these relationships persist in the next period?
- Wayne Inc. expects to maintain the same inventories at the end of the year as the beginning of the year. The estimated fixed costs for the year are P288,000, and the estimated variable costs per unit are P14. It is expected that P60,000 units will be sold at a price of P20 per unit. Maximum sales within the relevant range are 70,000 units. Instructions: 1. What is (a) contribution margin ratio and (b) the unit contribution margin. 2. Determine the break-even points in units. 3. Construct a cost- volume- profit chart, indicating the break-even point. 4. Construct a profit- volume chart, indicating the break-even point. 5. What is the margin of safety.Fantastic Company has capacity for the production and sales of 30,000 units. Current production is 10,000 units and fixed costs are $13 per unit. If production is increased to 20,000 units, fixed costs will:Jordan Inc. manufactures Product B, incurring variable product costs of $15.00 per unit and fixed product costs of $70,000. Total Selling and Administrative Expenses for the year are expected to be $15,700. Jordan desires a profit equal to a 12% rate of return on assets, $785,000 of assets are devoted to producing Product B, and 100,000 units are expected to be produced and sold. Round all answers to two decimal places. (a) Compute the markup percentage, using the product cost concept. (b) Compute the normal selling price of Product B. (a) (b)
- BBB Company has capacity to produce 150,000 units a year and sell it for $96 each. The costs of producing and selling 150,000 units are as follows (attached) Required 1. Suppose BBB is currently producing and selling 120,000 units. At this level of production and sales, its fixed costs are the same as given in the preceding table. WWW Company wants to place a onetime special order for 30,000 units at $75 each. Should BBB accept this one-time special order? Show your calculations. 2. Suppose BBB is currently producing and selling 150,000 units. (a) should BBB accept WWW offer one-time special order? Show your calculations. (b) at what price would BBB be indifferent between accepting the special order and continuing to sell to its regular customers at $96 per unit.tamarisk, Inc. is a company that manufactures and sells a single product. Unit sales for each of the four quarters of 2020 are projected as follows. Quarter Units First 96,000 Second 180,000 Third 660,000 Fourth 144,000 Annual total 1,080,000 Tamarisk incurs variable manufacturing costs of $0.40 per unit and variable nonmanufacturing costs of $0.35 per unit. Tamarisk will incur fixed manufacturing costs of $864,000 and fixed nonmanufacturing costs of $1,296,000. Tamarisk will sell its product for $4 per unit. (a) Determine the amount of net income Tamarisk will report in each of the four quarters of 2020, assuming actual sales are as projected and employing the integral approach to interim financial reporting. (Ignore income taxes.) Repeat the analysis under the discrete approach. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net income (Integral Approach) $ $ $ $…Jordan Inc. manufactures Product B, incurring variable product costs of $15.00 per unit and fixed product costs of $70,000. Total Selling and Administrative Expenses for the year are expected to be $15,700. Jordan desires a profit equal to a 10% rate of return on assets, $785,000 of assets are devoted to producing Product B, and 100,000 units are expected to be produced and sold. (a) Compute the markup percentage, using the product cost concept. (b) Compute the normal selling price of Product B. (a) (b)
- Funtastic Company has capacity for the production and sales of 30,000 units. Current production is 15,000 units and fixed costs are $16 per unit. If production decreases to 10,000 units, fixed costs will:Gelb Company currently manufactures 46,500 units per year of a key component for its manufacturing process. Variable costs are $7.35 per unit, fixed costs related to making this component are $75,000 per year, and allocated fixed costs are $72,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.70 per unit. Calculate the total incremental cost of making 46,500 units and buying 46,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier?Krismuch Co. estimated that the company can sell 200,000 units of a product next period and earn a profit of P350,000 after tax of 30%. Fixed costs are estimated at P480,000 for the period. Variable costs are equal to two thirds of sales revenue. To meet this objective, what price must be charged for each unit of product?