Sundial, Inc., produces two models of sunglasses: AU and NZ. The sunglasses have the following characteristics:
AU | NZ | |||||
Selling price per unit | $ | 160 | $ | 160 | ||
Variable cost per unit | $ | 80 | $ | 60 | ||
Expected units sold per year | 70,000 | 30,000 | ||||
The total fixed costs per year for the company are $3,612,000.
c. If the product sales mix were to change to four pairs of AU sunglasses for each pair of NZ sunglasses, what would be the new break-even volume for Sundial, Inc.?
AU | NZ | |||||
Selling price per unit | $ | 160 | $ | 160 | ||
Variable cost per unit | $ | 80 | $ | 60 | ||
Contribution margin per unit | $ | 80 | $ | 100 | ||
Sales mix = AU:NZ
= 4:1
Weighted contribution margin per unit = Contribution margin per unit of AU x Weight of AU + Contribution margin per unit of NZ x Weight of NZ
= 80 x 4/5 + 100 x 1/5
= 64+20
= $84
Break even point = Fixed cost / Weighted contribution margin per unit
= 3,612,000/84
= 43,000 units
the new break-even volume for Sundial, Inc = 43,000 units
Kindly give a positive rating if you are satisfied with this solution and please ask if you have any query.
Thanks
Sundial, Inc., produces two models of sunglasses: AU and NZ. The sunglasses have the following characteristics:...
Sundial, Inc., produces two models of sunglasses-AU and NZ. The sunglasses have the following characteristics. Selling price per unit Variable cost per unit Expected units sold per year AU $ 140 $ 80 75,000 NZ $ 140 $ 40 25,000 The total fixed costs per year for the company are $2,380,000. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix is the same at the break-even point, compute the...
Sundial, Inc. produces two models of sunglasses-AU and NZ. The sunglasses have the following characteristics. AU 180 Selling price per unit Variable cost per unit Expected units sold per year NZ $ 180 $ 60 40,000 60,000 The total fixed costs per year for the company are $1,056,000. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix is the same at the break-even point, compute the break-even point. c....
Sundial, Inc., produces two models of sunglasses-AU and NZ. The sunglasses have the following characteristics Selling price per unit Variable cost per unit Expected units sold per year AU $ 540 $ 240 60, eee $ $ NZ 540 270 40,000 The total fixed costs per year for the company are $14,112,000. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix is the same at the break-even point, compute...
Sundial, Inc., produces two models of sunglasses—AU and NZ. The sunglasses have the following characteristics. AU NZ Selling price per unit $ 500 $ 500 Variable cost per unit $ 200 $ 250 Expected units sold per year 40,000 60,000 The total fixed costs per year for the company are $7,830,000. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix is the same at the break-even point, compute the...
Sundial, Inc., produces two models of sunglasses: AU and NZ. The sunglasses have the following characteristics: AU NZ Selling price per unit $ 460 $ 460 Variable cost per unit $ 240 $ 200 Expected units sold per year 60,000 40,000 The total fixed costs per year for the company are $13,452,000. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix is the same at the break-even point, compute...
Sundial, Inc. produces two models of sunglasses-AU and NZ. The sunglasses have the following characteristics. Selling price per unit Variable cost per unit Expected units sold per year AU $ 140 S 80 75,000 NZ $ 140 $ 40 25,000 The total fixed costs per year for the company are $2,380,000. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix is the same at the break-even point, compute the...
Sundial, Inc., produces two models of sunglasses--AU and NZ. The sunglasses have the following characteristics. Selling price per unit Variable cost per unit Expected units sold per year AU $ 520 5 50,000 NZ $ 520 $ 200 75,000 The total fixed costs per year for the company are $20,148,000 Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix is the same at the break-even point, compute the break-even...
Sundial, Inc. produces two models of sunglasses-AU and NZ. The sunglasses have the following characteristics Selling price per unit Variable cost per unit Expected units old per year $ 200 250 50,00 The total fixed costs per year for the company are $7830,000 Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix is the same at the break-even point compute the break-even point c. If the product sales mix...
I need help with this accounting problem. Sundial, Inc. produces two models of sunglasses-AU and NZ. The sunglasses have the following characteristics Selling price per unit Variable cost per unit Expected units sold per year AU $ 360 $ 60 50,000 NZ S 360 $ 180 75,000 The total fixed costs per year for the company are $5,244,000. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix is the...
i-Ch 1,2,3 Saved Help Sundial, Inc., produces two models of sunglasses--AU and NZ. The sunglasses have the following characteristics. Selling price per unit Variable cost per unit Expected units sold per year AU $ 500 $ 200 40,000 NZ $ 500 $ 250 60,000 The total fixed costs per year for the company are $7,830,000. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix is the same at the...