Homework Answers
Solutions:
1.a.
| Hawaiian Fantasy | Tahitian Joy | Total | |||||
| Units Sold | 20000 | 5000 | |||||
| Per Unit | Total | % on Sales | Per Unit | Total | % on Sales | ||
| Selling Price | 15 | 300000 | 100% | 100 | 500000 | 100% | 800000 |
| Less: Variable Cost | 9 | 180000 | 60% | 20 | 100000 | 20% | 280000 |
| Contribution Margin | 6 | 120000 | 40% | 80 | 400000 | 80% | 520000 |
| Less: Fixed Cost | 475800 | ||||||
| Profit | 44200 | ||||||
1b.
| Break Even Point |
| Units |
| =Fixed Cost / CM Ratio |
| =475800/(520000/80000) |
| $732000 |
| Margin of Safety (Dollars) |
| Total Sales - BEP Sales |
| =800000-732000 |
| 68000 |
| Margin of Safety (%) |
| (Total Sales - BEP Sales)/Total Sales |
| =(800000-732000)/800000 |
| 8.50% |
2.
| Hawaiian Fantasy | Tahitian Joy | Samoan Delight | Total | |||||||
| Units Sold | 20000 | 5000 | 10000 | |||||||
| Per Unit | Total | % on Sales | Per Unit | Total | % on Sales | Per Unit | Total | % on Sales | ||
| Selling Price | 15 | 300000 | 100% | 100 | 500000 | 100% | 45 | 450000 | 100% | 1250000 |
| Less: Variable Cost | 9 | 180000 | 60% | 20 | 100000 | 20% | 36 | 360000 | 80% | 640000 |
| Contribution Margin | 6 | 120000 | 40% | 80 | 400000 | 80% | 9 | 90000 | 20% | 610000 |
| Less: Fixed Cost | 475800 | |||||||||
| Profit | 134200 | |||||||||
| Break Even Point |
| Units |
| =Fixed Cost / CM Ration |
| =475800/(610000/125000) |
| 975000 |
| Margin of Safety (Dollars) |
| Total Sales - BEP Sales |
| =1250000-975000 |
| 275000 |
| Margin of Safety (%) |
| (Total Sales - BEP Sales)/Total Sales |
| =(1250000-975000)/1250000 |
| 22.00% |
Add Answer to:
Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit, and annual sales volume are as follows: Hawaiian Tahitian 15 $ 100 Selling price per unit Variable expense per unit Number of units sold annually 20.000 5,000 Fixed expenses total $475,800 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both dollar and percent columns for each product...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Fixed expenses total $448,900 per year. Hawaiian Fantasy Tahitian Joy Selling price per unit $ 12 $ 100 Variable expense per unit $ 6 $ 25 Number of units sold annually 20,000 5,100 Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Hawaiian Fantasy Tahitian Joy Selling price per unit $ 30 $ 125 Variable expense per unit $ 21 $ 25 Number of units sold annually 10,000 5,600 Fixed expenses total $565,500 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Hawaiian Fantasy Tahitian Joy Selling price per unit $ 16 $ 120 Variable expense per unit $ 8 $ 42 Number of units sold annually 24,000 6,400 Fixed expenses total $580,500 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both...
sland Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
sland Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Hawaiian Fantasy Tahitian Joy Selling price per unit $ 20 $ 110 Variable expense per unit $ 9 $ 33 Number of units sold annually 22,000 6,000 Fixed expenses total $664,000 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both...
Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Tahitian Joy Selling price per unit Variable expense per unit Number of units sold annually alian Fantasy $ 28 $ 9 18, ese $ $ 140 35 6, ege Fixed expenses total $710,700 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product’s selling price,...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product’s selling price, variable expense per unit, and annual sales volume are as follows: Hawaiian Fantasy Tahitian Joy Selling price per unit $ 30 $ 125 Variable expense per unit $ 21 $ 25 Number of units sold annually 10,000 5,600 Fixed expenses total $565,500 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product’s selling price,...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product’s selling price, variable expense per unit, and annual sales volume are as follows: Hawaiian Fantasy Tahitian Joy Selling price per unit $ 36 $ 120 Variable expense per unit $ 18 $ 30 Number of units sold annually 16,000 7,200 Fixed expenses total $812,500 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product’s selling price,...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product’s selling price, variable expense per unit, and annual sales volume are as follows: Hawaiian Fantasy Tahitian Joy Selling price per unit $ 20 $ 125 Variable expense per unit $ 13 $ 50 Number of units sold annually 15,000 5,100 Fixed expenses total $325,000 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Selling price per unit Variable expense per unit Number of units sold annually Hawaiian Fantasy $ 20 $ 13 Tahitian Joy s 100 $ 30 7,200 34,000 Fixed expenses total $651,900 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both...
Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit, and annual sales volume are as follows: Hawaiian Tahitian 15 $ 100 Selling price per unit Variable expense per unit Number of units sold annually 20.000 5,000 Fixed expenses total $475,800 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both dollar and percent columns for each product...
Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Tahitian Joy Selling price per unit Variable expense per unit Number of units sold annually alian Fantasy $ 28 $ 9 18, ese $ $ 140 35 6, ege Fixed expenses total $710,700 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement...
Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Selling price per unit Variable expense per unit Number of units sold annually Hawaiian Fantasy $ 20 $ 13 Tahitian Joy s 100 $ 30 7,200 34,000 Fixed expenses total $651,900 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both...
Most questions answered within 3 hours.
-
Wildhorse Company follows the practice of pricing its inventory
at the lower-of-cost-or-market, on an individual-item
basis....
asked 26 minutes ago -
3. (10 pts) You grow a corn crop that yields 150 bushels ac-1,
with the following...
asked 15 minutes ago -
7. The term Six Sigma refers to:
Select one:
a. The control limits established in a...
asked 24 minutes ago -
For the following reaction: A(g) + 2 B(g) ⇌ 2 C(g) Calculate the
equilibrium constant K...
asked 27 minutes ago -
Which of the following best describes tidal volume? options:
1.The amount of oxygen in the air...
asked 43 minutes ago -
1. Smaller cost distortions occur when the traditional systems'
single indirect-cost rate and the activity-cost-driver rates:...
asked 51 minutes ago -
Using either a FMECA approach or some other appropriate RCA
tool, identify five risk treatment actions...
asked 52 minutes ago -
If for a test the P-value is between 0.0025 and 0.005, what
conclusion can you draw?...
asked 1 hour ago -
Using Python. Write a function clean2(aList) that takes a list
of integers aList as argument, and...
asked 1 hour ago -
Intrapreneurship is defined as the
development of an enterprise culture with an existing (Nandan,
2009). An...
asked 1 hour ago -
QUESTION 1 Tamiflu is a drug used to treat influenza. A study
found that Tamiflu reduced...
asked 1 hour ago -
Which of the following would be less likely to be used to
allocate factory overhead when...
asked 1 hour ago