Centermo Company has 3 major products whose contribution margins are shown below; Products (Shs) ...
Centermo Company has 3 major products whose contribution margins are shown below;
Products (Shs) A B C
Sales price 15 10 8
Variable cost per unit 10 6 5
Contribution per unit 5 4 3
Total fixed costs is Ksh 100,000
Calculate
- Break-even point for each product (3 Marks)
- Profit for each product at 30% above BEP (3 Marks)
Homework Answers
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Centermo Company has 3 major products whose contribution margins
are shown below;
Products (Shs)
...
Assume that the company sells two products, X and Y, with contribution margins per unit of...
Assume that the company sells two products, X and Y, with contribution margins per unit of $12 and $10, respectively. What happens to the break-even point if the sales mix shifts to favor product X? (In other words, sales of product X will make up a higher percentage of the sales mix.) Break-even point increases. Break-even point decreases. Break-even point stays the same. None of these answers is correct.
Question Mauro Products has a single product, a woven basket whose selling price is $ 15...
Question Mauro Products has a single product, a woven basket whose selling price is $ 15 and whose variable cost is $12 per unit. The company's monthly fixed expenses are $4,200. Required: 1. Solve for the company's break-even point in unit sales using the equation method. 2. Solve for the company's break-even point in sales dollars using the equation method and the CM ratio. 3. Solve for the company's break-even point in unit sales using the contribution margin method. 4....
Exercise 5-6 Break-Even Analysis (LO5-5] Mauro Products distributes a single product, a woven basket whose selling...
Exercise 5-6 Break-Even Analysis (LO5-5] Mauro Products distributes a single product, a woven basket whose selling price is $15 per unit and whose variable expense is $12 per unit. The company's monthly fixed expense is $4,200. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? baskets | 1....
1.2. Mauro Products distributes a single product, a woven basket whose selling price is $20 per...
1.2.
Mauro Products distributes a single product, a woven basket whose selling price is $20 per unit and whose variable expense is $15 per unit. The company's monthly fixed expense is $14,500. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not...
Mauro Products distributes a single product, a woven basket whose selling price is $30 per unit...
Mauro Products distributes a single product, a woven basket whose selling price is $30 per unit and whose variable expense is $25 per unit. The company’s monthly fixed expense is $12,500. Required: 1. Calculate the company’s break-even point in unit sales. 2. Calculate the company’s break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round...
Mauro Products distributes a single product, a woven basket whose selling price is $14 per unit...
Mauro Products distributes a single product, a woven basket whose selling price is $14 per unit and whose variable expense is $10 per unit. The company’s monthly fixed expense is $11,600. Required: 1. Calculate the company’s break-even point in unit sales. 2. Calculate the company’s break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales?
Mauro Products distributes a single product, a woven basket whose selling price is $10 per unit...
Mauro Products distributes a single product, a woven basket whose selling price is $10 per unit and whose variable expense is $9 per unit. The company's monthly fixed expense is $2,800. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round...
Mauro Products distributes a single product, a woven basket whose selling price is $10 per unit...
Mauro Products distributes a single product, a woven basket whose selling price is $10 per unit and whose variable expense is $7 per unit. The company's monthly fixed expense is $4,500. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round...
Mauro Products distributes a single product, a woven basket whose selling price is $10 per unit...
Mauro Products distributes a single product, a woven basket whose selling price is $10 per unit and whose variable expense is $7 per unit. The company's monthly fixed expense is $4,500 Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (DO not round...
A company sells a product with a contribution margin ratio of 20%. The company's monthly fixed...
A company sells a product with a contribution margin ratio of
20%. The company's monthly fixed expense is $400,000 and the
company's monthly target profit is $100,000. The dollar sales
required to attain the target profit are:
A.
$2,500,000
B.
$1,500,000
C.
$625,000
D.
$2,000,000
Sales above the break-even point will result in net profit equal
to _______.
A.
number of units above break-even times fixed cost per unit
B.
number of units above break-even times contribution margin per
unit...
Question Mauro Products has a single product, a woven basket whose selling price is $ 15 and whose variable cost is $12 per unit. The company's monthly fixed expenses are $4,200. Required: 1. Solve for the company's break-even point in unit sales using the equation method. 2. Solve for the company's break-even point in sales dollars using the equation method and the CM ratio. 3. Solve for the company's break-even point in unit sales using the contribution margin method. 4....
Exercise 5-6 Break-Even Analysis (LO5-5] Mauro Products distributes a single product, a woven basket whose selling price is $15 per unit and whose variable expense is $12 per unit. The company's monthly fixed expense is $4,200. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? baskets | 1....
1.2.
Mauro Products distributes a single product, a woven basket whose selling price is $20 per unit and whose variable expense is $15 per unit. The company's monthly fixed expense is $14,500. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not...
Mauro Products distributes a single product, a woven basket whose selling price is $10 per unit and whose variable expense is $9 per unit. The company's monthly fixed expense is $2,800. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round...
Mauro Products distributes a single product, a woven basket whose selling price is $10 per unit and whose variable expense is $7 per unit. The company's monthly fixed expense is $4,500. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round...
Mauro Products distributes a single product, a woven basket whose selling price is $10 per unit and whose variable expense is $7 per unit. The company's monthly fixed expense is $4,500 Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (DO not round...
A company sells a product with a contribution margin ratio of
20%. The company's monthly fixed expense is $400,000 and the
company's monthly target profit is $100,000. The dollar sales
required to attain the target profit are:
A.
$2,500,000
B.
$1,500,000
C.
$625,000
D.
$2,000,000
Sales above the break-even point will result in net profit equal
to _______.
A.
number of units above break-even times fixed cost per unit
B.
number of units above break-even times contribution margin per
unit...
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