Question

ford tops manufactures hats for a baseball teams. Ford has fixed cost of $100,000 per quarter...

ford tops manufactures hats for a baseball teams. Ford has fixed cost of $100,000 per quarter and sells each hat for $20. If the variable cost per hat is $12, how many hats must for sale each quarter to break even?
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Solution:

Contribution margin per unit = $20 - $12 = $8 per unit

Hats to be sold each quarter to break even = Fixed costs / contribution margin per unit

= $100,000/ $8 %

= 12,500 units

Add a comment
Know the answer?
Add Answer to:
ford tops manufactures hats for a baseball teams. Ford has fixed cost of $100,000 per quarter...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Ford Tops manufactures hats for baseball teams. Ford has fixed costs of $323,000 per quarter and...

    Ford Tops manufactures hats for baseball teams. Ford has fixed costs of $323,000 per quarter and sells each hat for $38. If the variable cost per hat is $19.00, how many hats must Ford sell each quarter to break even? (Do not round intermediate calculations.)

  • Custom Embroidering, Inc. (CEI) manufactures baseball hats with the Arizona State University Sun Devil logo embroidered...

    Custom Embroidering, Inc. (CEI) manufactures baseball hats with the Arizona State University Sun Devil logo embroidered on the hats. Even though the baseball hats come in a variety of colors, the hats are considered to be a single product. Each hat sells for $20 and CEI has forecasted quarterly sales for 2020 are as follows: Units 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $150,000 $200,000 $225,000 $175,000 Dollars 7,500 10,000 11,250 8,750 Finished goods inventory is maintained at 50%...

  • Question 3: Company XY sells two types of hats, A and B. Sales mix sells two...

    Question 3: Company XY sells two types of hats, A and B. Sales mix sells two types of hats, A and B. Sales mix of Company XY includes 20.000 hat A's and 50.000 hat B's. Unit sales price is 50 TL, and unit variable cost is 30 TL for hat A. Unit sales price is 35 TL, and unit variable cost is 20 TL for hat B. Total fixed cost of Company XY is 805.000 TL Required: a) How many...

  • Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves...

    Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $634,200, and the sales mix is 20% bats and 80% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $50 $40 Gloves 130 80 a. Compute the break-even sales (units) for both products combined. units b. How many units of each product, baseball...

  • Sales mix and break-even sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball glove...

    Sales mix and break-even sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $414,000, and the sales mix is 20% bats and 80% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $60 $60 Gloves 100 55 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and...

  • Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and...

    Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $756,000, and the sales mix is 20% bats and 80 gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $70 $50 110 Gloves 180 a. Compute the break-even sales (units) for both products combined. units b. How many units of each product, baseball...

  • Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball glove...

    Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $510,400, and the sales mix is 60% bats and 40% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $80 $60 Gloves 200 120 a. Compute the break-even sales (units) for both products combined. units b. How many units of each product, baseball...

  • Sales mix and break-even sales Dragon Sports Inc. manufactures and sells two products, baseball bats and...

    Sales mix and break-even sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $273,600, and the sales mix is 20% bats and 80% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $60 $60 Gloves 75 120 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and...

  • Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and...

    Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $445,000, and the sales mix is 40% bats and 60% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $50 $70 Gloves 180 a. Compute the break-even sales (units) for both products combined: 14,833 x units 5. How many units of each product,...

  • Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and...

    Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $620,000, and the sales mix is 40% bats and 60% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $90 $50 Gloves 105 65 a. Compute the break-even sales (units) for the overall enterprise product, E. units b. How many units of each...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT