What are total variable costs for Morris with their current product mix? Total variable costs $ B. Calculate the number of units of each product that will need to be sold in order for Morris to break even. Number of Units per Product AA fill in the blank BB fill in the blank CC fill in the blank C. What is their break-even point in sales dollars? D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0". Income Statement Sales Product AA $fill in the blank Product BB fill in the blank Product CC fill in the blank Total Sales $fill in the blank Variable Costs Product AA $fill in the blank Product BB fill in the blank Product CC fill in the blank Total Variable Costs $fill in the blank Contribution Margin $fill in the blank Fixed Costs fill in the blank Net Income $fill in the blank
What are total variable costs for Morris with their current product mix? Total variable costs $ B. Calculate the number of units of each product that will need to be sold in order for Morris to break even. Number of Units per Product AA fill in the blank BB fill in the blank CC fill in the blank C. What is their break-even point in sales dollars? D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0". Income Statement Sales Product AA $fill in the blank Product BB fill in the blank Product CC fill in the blank Total Sales $fill in the blank Variable Costs Product AA $fill in the blank Product BB fill in the blank Product CC fill in the blank Total Variable Costs $fill in the blank Contribution Margin $fill in the blank Fixed Costs fill in the blank Net Income $fill in the blank
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6PA: Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit...
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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:
Product | Sales Price per Unit |
Variable Cost per Unit |
AA | $45 | $30 |
BB | 35 | 10 |
CC | 35 | 5 |
Their sales mix is reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $189,000 per year.
A. What are total variable costs for Morris with their current product mix?
Total variable costs $
B. Calculate the number of units of each product that will need to be sold in order for Morris to break even.
Number of Units per Product |
|||
AA | fill in the blank | ||
BB | fill in the blank | ||
CC | fill in the blank |
C. What is their break-even point in sales dollars?
D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0".
Income Statement | |
Sales | |
Product AA | $fill in the blank |
Product BB | fill in the blank |
Product CC | fill in the blank |
Total Sales | $fill in the blank |
Variable Costs | |
Product AA | $fill in the blank |
Product BB | fill in the blank |
Product CC | fill in the blank |
Total Variable Costs | $fill in the blank |
Contribution Margin | $fill in the blank |
Fixed Costs | fill in the blank |
Net Income | $fill in the blank |
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