Explain how a shift in the sales mix could result in both a higher break-even point...
Explain how a shift in the sales mix could result in both a higher break-even point and a lower net income.
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Answer
A higher break-even point and lower net operating income could result if the sales mix shifted from high contribution margin products to low contribution margin products. Such shift would causes the average contribution margin ratio in the company to decline, resulting in less total contribution margin for a given sales. With a lower contribution margin ratio, the break-even point would be higher since it would require more sales to cover the same amount of fixed costs.
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Explain how a shift in the sales mix could result in
both a higher break-even point...
Explain how a shift in the sales mix can affect the break-even point and net operating...
Explain how a shift in the sales mix can affect the break-even point and net operating income. Please explain with some examples.
Mix and Break-Even sales the expected sales of laptops and tablets for Tech Products Inc. for...
Mix and Break-Even sales the expected sales of laptops and tablets for Tech Products Inc. for the current year, which is typical of recent years, are as follows: Data related Unit Selling Price Unit Variable Cost Products Sales Mix 40% Laptops $200 $140 Tablets 430 200 60% The estimated fixed costs for the current vear are $829.440 Required: 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach ebreak-even point for the current vear...
Sales Mix and Break-Even Sales Data related to the expected sales of laptops and tablets for...
Sales Mix and Break-Even Sales Data 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 Sales Mix Laptops Unit Selling Price $1,000 600 Unit Variable Cost $500 300 40% Tablets 60% The estimated fixed costs for the current year are $1,596,000. Required: 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for...
If the sales mix results in a lower contribution margin percentage, the break even point a....
If the sales mix results in a lower contribution margin percentage, the break even point a. increases b. decreases c. unchanged d. there is no relationship between contribution margin and sales mix strategy
Calculator Break-Even Point in Units for a Multiple Product Firm Amount Descriptions Sales Mix and Break-Even...
Calculator Break-Even Point in Units for a Multiple Product Firm Amount Descriptions Sales Mix and Break-Even Point Instructions Suppose that Head-First Company now sells both bicycle helmets and motorcycle helmets. The bicycle helmets are priced at $72 and have variable costs of $42 each. The motorcycle helmets are priced at $210 and have variable costs of $145 each. Total fixed cost for Head-First as a whole equals $44.800 (includes all foxed factory overhead and foved selling and administrative expense). Next...
Sales Mix and Break-Even Sales Data related to the expected sales of two types of frozen...
Sales Mix and Break-Even Sales Data related to the expected sales of two types of frozen pizzas for Norfolk Frozen Foods Inc. for the current yeat which is type of recent years, we as follow Products Unit Selling Price Unit Variable Cost Sales Mix 12" Plaza 16" Pizza The estimated feed costs for the current year are $46,800 Required: 1. Determine the estimated units of sales of the overall enterprise product, units necessary to reach the break-even point for the...
· Question 7 In the break-even analysis, a lower average variable cost (AVC): Will result in a higher break-even output Will result in a lower break-even output Will result in either...
· Question 7 In the break-even analysis, a lower average variable cost (AVC): Will result in a higher break-even output Will result in a lower break-even output Will result in either a lower or higher break-even output Will lower the contribution margin ratio · Question 8 In the break-even analysis where AVC is assumed to be constant, at each output, AVC and MC are equal AVC is greater than MC AVC is less than MC AVC can be greater or...
Sales Mix and Break-Even Sales Data related to the expected sales of kayaks and canoes for...
Sales Mix and Break-Even Sales Data related to the expected sales of kayaks and canoes for River Sports Inc. for the current year, which is typical of recent years, are as follows: Products Unit Selling Price Unit Variable Cost Sales Mix Kayaks $260 $180 40% Canoes 560 260 60% The estimated fixed costs for the current year are $1,424,640. Instructions: 1. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current...
Sales Mix and Break-Even Sales Data related to the expected sales of laptops and tablets for...
Sales Mix and Break-Even Sales Data 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 Unit Variable Cost Sales Mix Laptops $180 $120 30% Tablets 470 220 70% The estimated fixed costs for the current year are $225,810. Required: 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for...
Sales mix and break-even sales Obj. 5Data related to the expected sales of laptops and tablets...
Sales mix and break-even sales Obj. 5Data 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 Unit Variable Sales Price Cost Mix Laptops $1,600 $800 40% Tablets 850 350 60% The estimated fixed costs for the current year are $2,498,600. Instructions 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point...
Mix and Break-Even sales the expected sales of laptops and tablets for Tech Products Inc. for the current year, which is typical of recent years, are as follows: Data related Unit Selling Price Unit Variable Cost Products Sales Mix 40% Laptops $200 $140 Tablets 430 200 60% The estimated fixed costs for the current vear are $829.440 Required: 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach ebreak-even point for the current vear...
Sales Mix and Break-Even Sales Data 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 Sales Mix Laptops Unit Selling Price $1,000 600 Unit Variable Cost $500 300 40% Tablets 60% The estimated fixed costs for the current year are $1,596,000. Required: 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for...
Calculator Break-Even Point in Units for a Multiple Product Firm Amount Descriptions Sales Mix and Break-Even Point Instructions Suppose that Head-First Company now sells both bicycle helmets and motorcycle helmets. The bicycle helmets are priced at $72 and have variable costs of $42 each. The motorcycle helmets are priced at $210 and have variable costs of $145 each. Total fixed cost for Head-First as a whole equals $44.800 (includes all foxed factory overhead and foved selling and administrative expense). Next...
Sales Mix and Break-Even Sales Data related to the expected sales of two types of frozen pizzas for Norfolk Frozen Foods Inc. for the current yeat which is type of recent years, we as follow Products Unit Selling Price Unit Variable Cost Sales Mix 12" Plaza 16" Pizza The estimated feed costs for the current year are $46,800 Required: 1. Determine the estimated units of sales of the overall enterprise product, units necessary to reach the break-even point for the...
Sales Mix and Break-Even Sales Data 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 Unit Variable Cost Sales Mix Laptops $180 $120 30% Tablets 470 220 70% The estimated fixed costs for the current year are $225,810. Required: 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for...
Sales mix and break-even sales Obj. 5Data 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 Unit Variable Sales Price Cost Mix Laptops $1,600 $800 40% Tablets 850 350 60% The estimated fixed costs for the current year are $2,498,600. Instructions 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point...
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