Explain the following statement: "For the multiproduct firm, there is no breakeven point independent of the...
Explain the following statement: "For the multiproduct firm, there is no breakeven point independent of the sales-mix assumptions."
Homework Answers
Because the break even point is determined by total cost to calculate revenue do not directly affect the break even point sales revenuw do,however determine whether the company actually reaches break even point.if revenue is less than total cost the company didnot reach breakeven point .which result a loss.
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Explain the following statement: "For the multiproduct firm,
there is no breakeven point independent of the...
In calculating the breakeven point for a multiproduct company, which of the following assumptions are commonly...
In calculating the breakeven point for a multiproduct company, which of the following assumptions are commonly made when variable costing is used? Sales volume equals production volume. Variable costs are constant per unit. A given sales mix is maintained for all volume changes. a- I and II. B- I, II, and III. C- II and III. D- I and III.
Explain multiproduct breakeven analysis. What is the assumption on proportions among the quantities in multiproduct breakeven...
Explain multiproduct breakeven analysis. What is the assumption on proportions among the quantities in multiproduct breakeven analysis? Provide a hypothetical example of multiproduct breakeven analysis. Provide in-text citations and explain your example in detail.
Jake's Pet Supplies: Please see highlighted Table yellow portion: Need: Multiproduct Breakeven point: in units and...
Jake's Pet Supplies:
Please see highlighted Table yellow portion:
Need: Multiproduct Breakeven point: in units and sales revenue
at break even and target profit point for Product 1, Product 2 and
the totals
Land it $6.00 60% Jake's Pet Supplies Pro Forma Contribution Margin Income Statement For the month ending June 30 ASSUMPTIONS Product 31: Launch-it Sales price per unit $10.00 Variable costs per unit: Sales comission $1.00 Purchase price $1.00 Shipping and handling Total variable cost per unit $4.00...
Done The products often have different unit variable costs. Thus, the total profit and the breake...
number 6
Done The products often have different unit variable costs. Thus, the total profit and the breakeven point depend on the proportions in which the products are sold. Sales mix is the relative contribution of sales among various products sold by a firm. Assume that the sales of Jordan, Inc, for a typical year are as follows Units Sold Sales Mix 18,000 20 Total Assume the following unit selling prices and unit variable costs Product Selling Price per UiVariable...
If the __________ changes, so does the _______________. A. sales mix; breakeven point B. sales mix;...
If the __________ changes, so does the _______________. A. sales mix; breakeven point B. sales mix; contribution margin per unit. C. horizontal mix; breakeven point. D. horizontal mix; contribution margin ratio
Show ALL calculations to receive partial credit!! (a) Calculate the breakeven point in units for each...
Show ALL calculations to receive partial credit!! (a) Calculate the breakeven point in units for each of the products assuming a 4:3 sales mix. (b) Calculate the breakeven point in units for each of the products assuming a 3:4 sales mix. JAG Radio Supply sells only two products, Product X and Product Y. Selling price Variable cost per unit Total fixed costs Product Product Y $25 545 $20 Total Required: $35 $350,000 [10 points) [11 points) (C) Assuming sales are...
Breakeven analysis; multiproduct CVP analysis Herzog Industries sells two electrical components with the following characteristics. Fixed...
Breakeven analysis; multiproduct CVP analysis Herzog Industries sells two electrical components with the following characteristics. Fixed costs for the company are $200,000 per year. XL-709 CD-918 Sales price $15.00 $38.00 Variable cost 10.00 24.00 Sales volume 30,000 units 75,000 units Required How many units of each product must Herzog Industries sell in order to break even? Herzog’s vice president of sales has determined that due to market changes, the sales price of component XL-709 can be increased to $25.00 with...
a) Breakeven point analysis is an important financial analysis tool used by business owners. i) Explain...
a) Breakeven point analysis is an important financial analysis tool used by business owners. i) Explain the importance of breakeven analysis. ii) What are its advantages and limitations? b) Robert Industries produces a single product. The following are the financial numbers related to this product Selling Price = $250 per unit Variable cost = $100 per unit Fixed Costs = $56,000 The Management wants to know the following : 1. Contribution per Unit 2. Contribution Margin ratio 3. Break even...
10. MULTIPLE PRODUCT BREAKEVEN POINT. Angus Manufacturing makes basic tools for sale in hardware stores across...
10. MULTIPLE PRODUCT BREAKEVEN POINT. Angus Manufacturing makes basic tools for sale in hardware stores across the country. It is a successful business, with the following unit sales in a month. It faces fixed costs of $225,000 per month. Angus wants you to help him understand how his product mix affects his business. Angus Manufacturing Price per Unit Variable Cost per Unit Product Units Sold Hammers Socket wrenches Plain screwdriver Phillips-head screwdriver Pliers $10 $7.50 25,000 $25 $15.00 10,000 $8...
(generate an incremental contribution margin of $38,500)? 2-44 Multiproduct breakeven analysis, target profit, taxes Johnson Company...
(generate an incremental contribution margin of $38,500)? 2-44 Multiproduct breakeven analysis, target profit, taxes Johnson Company manufactures a sin- gle product called the Gripper. Patients, under the direction of physiotherapists, use the Gripper to restore, to the extent possible, normal hand functions. The Gripper has the following per-unit revenue and costs: Revenue $20 Direct materials cost. Direct labor cost Variable overhead Contribution margin per unit $6 Johnson Company has fixed manufacturing costs of $1 million per year and fixed general,...
Jake's Pet Supplies:
Please see highlighted Table yellow portion:
Need: Multiproduct Breakeven point: in units and sales revenue
at break even and target profit point for Product 1, Product 2 and
the totals
Land it $6.00 60% Jake's Pet Supplies Pro Forma Contribution Margin Income Statement For the month ending June 30 ASSUMPTIONS Product 31: Launch-it Sales price per unit $10.00 Variable costs per unit: Sales comission $1.00 Purchase price $1.00 Shipping and handling Total variable cost per unit $4.00...
number 6
Done The products often have different unit variable costs. Thus, the total profit and the breakeven point depend on the proportions in which the products are sold. Sales mix is the relative contribution of sales among various products sold by a firm. Assume that the sales of Jordan, Inc, for a typical year are as follows Units Sold Sales Mix 18,000 20 Total Assume the following unit selling prices and unit variable costs Product Selling Price per UiVariable...
Show ALL calculations to receive partial credit!! (a) Calculate the breakeven point in units for each of the products assuming a 4:3 sales mix. (b) Calculate the breakeven point in units for each of the products assuming a 3:4 sales mix. JAG Radio Supply sells only two products, Product X and Product Y. Selling price Variable cost per unit Total fixed costs Product Product Y $25 545 $20 Total Required: $35 $350,000 [10 points) [11 points) (C) Assuming sales are...
10. MULTIPLE PRODUCT BREAKEVEN POINT. Angus Manufacturing makes basic tools for sale in hardware stores across the country. It is a successful business, with the following unit sales in a month. It faces fixed costs of $225,000 per month. Angus wants you to help him understand how his product mix affects his business. Angus Manufacturing Price per Unit Variable Cost per Unit Product Units Sold Hammers Socket wrenches Plain screwdriver Phillips-head screwdriver Pliers $10 $7.50 25,000 $25 $15.00 10,000 $8...
(generate an incremental contribution margin of $38,500)? 2-44 Multiproduct breakeven analysis, target profit, taxes Johnson Company manufactures a sin- gle product called the Gripper. Patients, under the direction of physiotherapists, use the Gripper to restore, to the extent possible, normal hand functions. The Gripper has the following per-unit revenue and costs: Revenue $20 Direct materials cost. Direct labor cost Variable overhead Contribution margin per unit $6 Johnson Company has fixed manufacturing costs of $1 million per year and fixed general,...
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