FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Dellcom Inc. sells two products: a regular and a deluxe version. The owner would like to better understand the impact of the sales mix on the company's sales. The following information is available: Regular Deluxe Sales price per unit Variable cost per unit $38 $61 $15 $34 The company has total fixed costs of $384,615 for the year and they sell 9 Regular products for every 4 Deluxe product. The owner would like to know, given the sales mix, how many units of each product the company must sell per year to break even. The company must sell units of the Regular product. Enter the number of units given the current sales mix. The company must sell units of the Deluxe product. Enter the number of units given the current sales mix.arrow_forwardData related to the expected sales of laptops and tablets for Tech Products Inc. for the current year, which is typical of recent years, are as follows: Products Unit Selling Price Laptops $230 Tablets 420 The estimated fixed costs for the current year are $402,500. Unit Variable Cost $160 200 Why is it so different? The break-even point is heavily toward the product with the Sales Mix Required: 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for the current year. units units 30% 2. Based on the break-even sales (units) in part (1), determine the unit sales of both laptops and tablets for the current year. Laptops: Tablets: units 70% 3. Assume that the sales mix was 70% laptops and 30% tablets. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year. units in this scenario than in part (1) because the sales mix is weighted contribution margin per unit…arrow_forwardWitrox Bhd sells two models of smartphone, the Oppo and the Xiaomi. Oppo RM 60.0 35.0 25.0 Sales price per unit Variable cost per unit Contribution margin per unit Witrox has determined that it would break even at an annual sales volume of 50,000 units, of which 75% would be Oppo. Required: a) What are the contribution margin ratios for each product and the company? b) What is the amount of Witrox's estimated annual fixed costs? Xiaomi RM 85.0 54.0 31.0 c) What is the sales mix? d) Prepare a product line income statement with operating income of RM500,000. Fixed production costs will increase RM45,000 and fixed administrative costs will increase RM22,500 to support the increase in volume.arrow_forward
- Sunland Company sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus). Q-Drive has variable costs per unit of $60 and a selling price of $120. Q-Drive Plus has variable costs per unit of $75 and a selling price of $165. Sunland’s fixed costs are $1053000. How many units of Q-Drive would be sold at the break-even point? A. 5265. B. 13000. C. 3900. D. 9100.arrow_forwardTiktok Company distributes a lightweight lawn chair that sell for P150 per unit. Variable costs are P60 per unit, and fixed costs total P1,800,000 annually. Assume the company sold 28,000 units last year. The sales manager is convinced that a 10% reduction in selling price, combined with a P700,000 increase in advertising expenditures, would cause annual sales in units to increase by 50%. REQUIRED: 1. Prepare two contribution margin income statements, one showing the results of last year's operations and one showing what the results of operations would be if these changes were made. 2. Would you recommend that the company do as the sales manager suggests? Why?arrow_forwardPlease help break it down. Thanks!arrow_forward
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