Homework Answers
Answer 1
| High quality | Medium quality | |
| Selling Price | $ 1,200 | $ 700 |
| Less: Invoice cost | $ 650 | $ 370 |
| Less: Sales commission | $ 70 | $ 50 |
| Contribution | $ 480 | $ 280 |
Answer 2
| High quality | Medium quality | |
| Sales mix | 75% | 25% |
Answer 3
| High quality | Medium quality | |
| Selling Price | $ 1,200 | $ 700 |
| Less: Invoice cost | $ 650 | $ 370 |
| Less: Sales commission | $ 70 | $ 50 |
| Contribution | $ 480 | $ 280 |
| Sales mix | 75% | 25% |
| Weighted Contribution margin (480*75%+280*25%) | $ 430.00 | |
Answer 4
| Weighted Contribution margin | $ 430.00 | |
| Fixed cost | $ 138,600 | |
| Required sales units | 322.33 | |
| Sale from each product | 241.74 | 80.58 |
| Sales in $ | $ 290,093.02 | $ 56,406.98 |
| Total sales | $ 346,500.00 | |
Answer 5
| Weighted Contribution margin | $ 430.00 | |
| Fixed cost+Profit | $ 237,600 | |
| Required sales units | 552.56 | |
| Sale from each product | 414.42 or 415 | 138.14 or 139 |
In case of any doubt, please comment.
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Exercise 7-29 Retail; CVP Analysis with Multiple Products (LO 7-1, 7-2, 7-5) Tim's Bicycle Shop sells...
Tim's Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has...
Tim's Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has divided sales into two categories, as follows: Product Type High-quality Modium-quality Sales Price Trivoice Cost Sales Commission $1,300 $ 700 $80 750 420 60 Three-quarters of the shop's sales are medium-quality bikes. The shop's annual fixed expenses are $159,600. (In the following requirements, ignore income taxes.) Required: 1. Compute the unit contribution margin for each product type. 2. What is the shop's sales mix?...
Tim's Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has divid...
Tim's Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has divided sales into two categories, as follows: Product Type Bigh-quality Medium- quality Sales Price $1.750 870 Invoice Cost $790 570 Sales Commission $90 30 Three-quarters of the shop's sales are medium-quality bikes. The shop's annual fixed expenses are $277,200. (In the following requirements, ignore income taxes.) Required: 1. Compute the unit contribution margin for each product type. 2. What is the shop's sales mix?...
Tim's Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has...
Tim's Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has divided sales into two categories, as follows: Product Sales Sales Invoice Commission Price Cost Туре High quality Medium- $1,500 $800 $100 850 520 80 quality Three-quarters of the shop's sales are medium-quality bikes. The shop's annual fixed expenses are $168,750. (In the following requirements, ignore income taxes.) Complete this question by entering your answers in the tabs below. Required 4 Required 1 Required 2...
Tim’s Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has...
Tim’s Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has divided sales into two categories, as follows: Product Type Sales Price Invoice Cost Sales Commission High-quality $ 1,400 $ 750 $ 90 Medium-quality 800 470 70 Three-quarters of the shop’s sales are medium-quality bikes. The shop’s annual fixed expenses are $147,400. (In the following requirements, ignore income taxes.) Required: Compute the unit contribution margin for each product type. What is the shop’s sales mix?...
Tim's Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has divided s...
Tim's Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has divided sales into two categories, as follows: Product Sales Price Invoice Sales Commission Cost Туре High quality Medium quality $1,500 $800 $100 850 520 80 Three-quarters of the shop's sales are medium-quality bikes. The shop's annual fixed expenses are $168,750. (In the following requirements, ignore income taxes.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 5...
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Tim’s Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has divided sales into two categories, as follows: Product Type Sales Price Invoice Cost Sales Commission High-quality $ 1,300 $ 700 $ 80 Medium-quality 750 420 60 Three-quarters of the shop’s sales are medium-quality bikes. The shop’s annual fixed expenses are $159,600. (In the following requirements, ignore income taxes.) Required: Compute the unit contribution margin for each product type. What is the shop’s sales mix?...
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Tim’s Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has divided sales into two categories, as follows: Product Type Sales Price Invoice Cost Sales Commission High-quality $ 1,750 $ 790 $ 90 Medium-quality 870 570 30 Three-quarters of the shop’s sales are medium-quality bikes. The shop’s annual fixed expenses are $277,200. (In the following requirements, ignore income taxes.) Required: Compute the unit contribution margin for each product type. What is the shop’s sales mix?...
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Tim's Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has divided sales into two categories, as follows: Product Type High-quality Modium-quality Sales Price Trivoice Cost Sales Commission $1,300 $ 700 $80 750 420 60 Three-quarters of the shop's sales are medium-quality bikes. The shop's annual fixed expenses are $159,600. (In the following requirements, ignore income taxes.) Required: 1. Compute the unit contribution margin for each product type. 2. What is the shop's sales mix?...
Tim's Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has divided sales into two categories, as follows: Product Type Bigh-quality Medium- quality Sales Price $1.750 870 Invoice Cost $790 570 Sales Commission $90 30 Three-quarters of the shop's sales are medium-quality bikes. The shop's annual fixed expenses are $277,200. (In the following requirements, ignore income taxes.) Required: 1. Compute the unit contribution margin for each product type. 2. What is the shop's sales mix?...
Tim's Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has divided sales into two categories, as follows: Product Sales Sales Invoice Commission Price Cost Туре High quality Medium- $1,500 $800 $100 850 520 80 quality Three-quarters of the shop's sales are medium-quality bikes. The shop's annual fixed expenses are $168,750. (In the following requirements, ignore income taxes.) Complete this question by entering your answers in the tabs below. Required 4 Required 1 Required 2...
Tim's Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has divided sales into two categories, as follows: Product Sales Price Invoice Sales Commission Cost Туре High quality Medium quality $1,500 $800 $100 850 520 80 Three-quarters of the shop's sales are medium-quality bikes. The shop's annual fixed expenses are $168,750. (In the following requirements, ignore income taxes.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 5...
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