INCOME STATEMENT | ||||||||
DREAM: | ||||||||
Sales Revenue | $150,900 | ((114*35)+(0.8*756*25)+(0.75*984*15))*5 | ||||||
Variable Costs | $42,500 | (5*8500) | ||||||
Contribution Margin | $108,400 | |||||||
Fixed Costs | $275,500 | |||||||
Operating income | ($167,100) | |||||||
PETER PAN | ||||||||
Sales Revenue | $150,900 | ((114*35)+(0.8*756*25)+(0.75*984*15))*5 | ||||||
Variable Costs | $42,500 | (5*8500) | ||||||
Contribution Margin | $108,400 | |||||||
Fixed Costs | $145,500 | |||||||
Operating income | ($37,100) | |||||||
NUTCRACKER | ||||||||
Sales Revenue | $753,000 | ((114*35)+(756*25)+(984*15))*20 | ||||||
Variable Costs | $170,000 | (20*8500) | ||||||
Contribution Margin | $583,000 | |||||||
Fixed Costs | $70,500 | |||||||
Operating income | $512,500 | |||||||
SLEEPING BEAUTY | ||||||||
Sales Revenue | $301,800 | ((114*35)+(0.8*756*25)+(0.75*984*15))*10 | ||||||
Variable Costs | $85,000 | (10*8500) | ||||||
Contribution Margin | $216,800 | |||||||
Fixed Costs | $345,000 | |||||||
Operating income | ($128,200) | |||||||
SWAN LAKE | ||||||||
Sales Revenue | $150,900 | ((114*35)+(0.8*756*25)+(0.75*984*15))*5 | ||||||
Variable Costs | $42,500 | (5*8500) | ||||||
Contribution Margin | $108,400 | |||||||
Fixed Costs | $155,500 | |||||||
Operating income | ($47,100) | |||||||
Number of performance to reach Break Even for each ballet | ||||||||
DREAM: | ||||||||
A | Contribution Margin | $108,400 | ||||||
B | Contribution per performance | $21,680 | (108400/5) | |||||
C | Fixed Costs | $275,500 | ||||||
D=C/B | Break even performance | 13 | Rounded to next higher round number | |||||
PETER PAN | ||||||||
A | Contribution Margin | $108,400 | ||||||
B | Contribution per performance | $21,680 | (108400/5) | |||||
C | Fixed Costs | $145,500 | ||||||
D=C/B | Break even performance | 7 | Rounded to next higher round number | |||||
NUTCRACKER | ||||||||
A | Contribution Margin | $583,000 | ||||||
B | Contribution per performance | $29,150 | (583000/20) | |||||
C | Fixed Costs | $70,500 | ||||||
D=C/B | Break even performance | 3 | Rounded to next higher round number | |||||
SLEEPING BEAUTY | ||||||||
A | Contribution Margin | $216,800 | ||||||
B | Contribution per performance | $21,680 | (216800/10) | |||||
C | Fixed Costs | $345,000 | ||||||
D=C/B | Break even performance | 16 | Rounded to next higher round number | |||||
SWAN LAKE | ||||||||
A | Contribution Margin | $108,400 | ||||||
B | Contribution per performance | $21,680 | (108400/5) | |||||
C | Fixed Costs | $155,500 | ||||||
D=C/B | Break even performance | 8 | Rounded to next higher round number | |||||
Problem 12 Break-even with multiple products Boston Ballet is located in Boston. The company is housed...
Swan Lake Company is engaged in producing ballet shoes for children aged 3 to 6. The current yearly sales of ballet shoes are 38,750 pairs at $120 per pair. The variable costs are $80 per pair and fixed costs are $950,000 per year. Jenny, the company's owner, is not satisfied with present profit level. She is planning to put forward one of the following three proposals: Proposal 1: Increase advertising expenditure of $80,000 to promote sales. It is estimated that...
Swan Lake Company is engaged in producing ballet shoes for children aged 3 to 6. The current yearly sales of ballet shoes are 38,750 pairs at $120 per pair. The variable costs are $80 per pair and fixed costs are $950,000 per year. Jenny, the company's owner, is not satisfied with present profit level. She is planning to put forward one of the following three proposals: Proposal 1: Increase advertising expenditure of $80,000 to promote sales. It is estimated that...
can clearly complete the answers ? Swan Lake Company is engaged in producing ballet shoes for children aged 3 to 6. The current yearly sales of ballet shoes are 38,750 pairs at $120 per pair. The variable costs are $80 per pair and fixed costs are $950,000 per year. Jenny, the company's owner, is not satisfied with present profit level. She is planning to put forward one of the following three proposals: Proposal 1: Increase advertising expenditure of $80,000 to...
eBook Show Me How Calculator Margin of Safety a. If Canace Company, with a break-even point at $369,200 of sales, has actual sales of $520,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number 1. $ 2. % b. If the margin of safety for Canace Company was 25%, fixed costs were $1,496,250, and variable costs were 75% of sales, what was the amount...
Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 DVDs and 4,500 equipment sets. Information on the two products is as follows: DVDs Equipment Sets Price $8 $25 Variable cost per unit 4 15 Total fixed cost is $99,750. Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale...
Instructions Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDS and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 DVDS and 4,500 equipment sets. Information on the two products is as follows: Equipment Sets DVDS Price $8 $25 Variable cost per unit 15 Total fixed cost is $98,550. Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale...
Multiple Product Break-Even Analysis Presented is information for Stafford Company's three products. A B C Unit selling price $6 $8 $8 Unit variable costs (4) (5) (3) Unit contribution margin $2 $3 $5 With monthly fixed costs of $143,000, the company sells two units of A for each unit of B and three units of B for each unit of C. Determine the unit sales of product A at the monthly break-even point. Answer units
EXERCISES: Set A (continued) 30. Break-Even Point and Target Profit Measured in Units (Multiple Products a. Start by calculating the contribution margin for each product Sweater contribution margin- Jacket contribution margin- per unit per unit Then, calculate the weighted average contribution margin per unit: Weighted average contribution margin per unit = ) + ( b. The break-even point in units is calculated as: c. Break-even point in units for each product is: Sweater Jacket Total units (= units (= units...
Exercise 3-15A (Algo) Multiple product break-even analysis LO 3-6 Fanning Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 91 (68) $ 23 Supreme $126 (82) $ 44 Fanning expects to incur annual fixed costs of $155,290. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme Required a. Determine the total number of products (units of...
Exercise 3-15A Multiple product break-even analysis LO 3-6 Benson Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 108 (61) $ 47 Supreme $138 (88) $50 Benson expects to incur annual fixed costs of $192,800. The relative sales mix of the products is 60 percent for Super and 40 percent for Supreme. Required a. Determine the total number of products (units of Super and...