Question

Calculator Perhe Multiple-Product Breakeven Parker Pottery produces a line of vases and equals $31,200. Parker's account 88 amic figurines. Each line uses the same equipment and labor; hence, there are no traceable foxed costs. Common fixed cost the two lines and has gathered the following data for last year: ? $ Price Variable cost $123 Contribution margin Number of units TL Required: If required, round your final answers to nearest whole value 1. Compute the number of vases and the number of figurines that must be sold Break-even vases 1,950 x units Break-even figurines X units 2. Parker Pottery is considering upgrading its factory to improve the quality of its products. The upgrade will add $5.280 per year to t h e cost. If ther projected sales of vases will be 2,000, and figurine sales will increase to 1,000 units. What is the new break-even point in units for each of the products? Break-even vase X units Break-even figurines X units e is

Answer 1

Answer 1

	Vases	Figurines
Sale from each product	$ 1,300.000	$ 650.000

Calculations:

	Vases	Figurines
Selling Price	40	70
Variable Cost	30	42
Contribution margin ratio	$         10.00	$      28.00
Units	1,000	500
Weighted Contribution margin	$                               16
Fixed cost	$                     31,200
Required sales	1,950
	Vases	Figurines
Sale from each product	1,300	650

Answer 2

	Vases	Figurines
Sale from each product	$ 1,520.000	$ 760.000

Calculations:

	Vases	Figurines
Selling Price	40	70
Variable Cost	30	42
Contribution margin ratio	$         10.00	$      28.00
Units	2,000	1,000
Weighted Contribution margin	$                               16
Fixed cost	$                     36,480
Required sales	2,280
	Vases	Figurines
Sale from each product	1,520	760

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