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Check my w Cheryl Montoya picked up the phone and called her boss, Wes Chan, the vice president of marketing at Piedmont Fasteners Corporation: Wes, Im not sure how to go about answering the questions that came up at the meeting with the president yesterday Whats the problem? The president wanted to know the break-even point for each of the companys products, but I am having trouble figuring them out. Im sure you can handle it, Cheryl. And, by the way. I need your analysis on my desk tomorrow morning at 8:00 sharp in time for the follow-up meeting at 9:00. Piedmont Fasteners Corporation makes three different clothing fasteners in its manufacturing facility in North Carolina. Data concerning these products appear below Velcro Metal Nylon Annual sales volume Unit selling price Variable expense per unit 119,000 185,000 310,000 $2.20 $1.30 $1.30 $1.00$0.70 $0.90 Total fixed expenses are $257,000 per year. All three products are sold in highly competitive markets, so the company is unable to raise prices without losing an unacceptable numbers of customersChe The company has an extremely effective lean production system, so there are no beginning or ending work in process or finished goods inventories. Required: 1. What is the companys over-all break-even point in dollar sales? 2 Of the total fixed expenses of $257000, $28,320 could be avoided if the Velcro product is dropped, $98,400 if the Metal product is dropped, and $77,200 if the Nylon product is dropped. The remaining fixed expenses of $53,080 consist of common fixed expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely a. What is the break-even point in unit sales for each product? b. If the company sells exactly the break-even quantity of each product, what will be the overall profit of the company? Complete this question by entering your answers in the tabs Required 1 Required 2A Required 2B of the total fixed expenses of $257,000, $28,320 could be avoided if the Velcro product is dropped, $98,400 if the Metal product is dropped, and $77,200 if the Nylon product is dropped. The remaining fixed expenses of $53,080 consist of common fixed expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely. If the company sells exactly the break-even quantity of each product, what will be the overall profit of theCheck 2. Of the total fixed expenses of $257,000, $28,320 could be avoided if the Velcro product is dropped, $98,400 if the Metal product is dropped, and $77,200 if the Nylon product is dropped. The remaining fixed expenses of $53,080 consist of common fixed expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely. a. What is the break-even point in unit sales for each product? b. If the company sells exactly the break-even quantity of each product, what will be the overall profit of the company? Complete this question by entering your answers in the tabs below Required 1Reqied 2A Required 2B at is the companys over-all break-even point in dollar sales? (Round CM ratio to 4 decimal places and final answer to the nearest thousand dollars.) Break-even point in dollar sales Required 2A2. Of the total fixed expenses of $257,000, $28,320 could be avoided if the Velcro product is dropped, $98,400 if the Metal product is dropped, and $77,200 if the Nylon product is dropped. The remaining fixed expenses of $53,080 consist of common fixed expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely. a. What is the break-even point in unit sales for each product? b. If the company sells exactly the break-even quantity of each product, what will be the overall profit of the company? Complete this question by entering your answers in the tabs below Required 1Required 2A Required 2B Of the total fixed expenses of $257,000, $28,320 could be avoided if the Velcro product is dropped, $98,400 if the Metal product is dropped, and $77,200 if the Nylon product is dropped. The remaining fixed expenses of $53,080 consist of common fixed expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely. What is the break-even point in unit sales for each product? (Do not round intermediate calculations.) Show less Velcro Metal Nylon Break-even point in unit sales2. Of the total fixed expenses of $257,000, $28,320 could be avoided if the Velcro product is dropped, $98,400 if the Metal product is dropped, ad $77,200 if the Nylon product is dropped. The remaining fixed expenses of $53,080 consist of common fixed expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely. a. What is the break-even point in unit sales for each product? b. If the company sells exactly the break-even quantity of each product, what will be the overall profit of the company? Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B of the total fixed expenses of $257,000, $28,320 could be avoided if the Velcro product is dropped, $98,400 if the Metal product is dropped, and $77,200 if the Nylon product is dropped. The remaining fixed expenses of $53,080 consist of common fixed expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely. If the company sells exactly the break-even quantity of each product, what will be the overall profit of the company? Show less

please just full the blanks, explanation is not necessary.

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Answer #1

Answer 1:

Break-even point in dollar sales $616,000

Workings:

Velcro Metal Nylon Annual sales volume Unit selling price Variable expense per unit 119,000 $2.20 $1.00 185,000 $1.30 $0.70 310,000 $1.30 $0.90 Velcro $261,800.00 $240,500.00 $403,000.00 |$905,300.00 $119,000.00 $129,500.00 $279,000.00 $527,500.00 $142,800.00 $111,000.00 $124,000.00 $377,800.00 Metal Nylon Total Sales in dollar Variable cost Contribution Contribution Margin(%) 54.55% 46.15% 30.77%) 41.7320% Companys break even point in dollar sales Fixed expense / Contribution % $615,834 in nearest thousand dollars$616,000

Answer 2A:

Velcro Metal Nylon Break-even point in unit sales23,600 164,000 193,000

Workings:

Velcro Metal Nylon Annual sales volume Unit selling price Variable expense per unit Contribution per unit Fixed expenses Break-even point in units sales(Fixed expense / contribution per unit 310,000 $1.30 $0.90 $0.40 $28,320.00 $98,400.00 $77,200.00 119,000 $2.20 $1.00 $1.20 185,000 $1.30 $0.70 $0.60 23,600 164,000 193,000

Answer 2B:

If company sales exactly break-even quantity of each product (as calculated above in answer 2A), company will incur loss to the extent of common fixed expenses of $53,080

Overall profit(loss) of company ($53,080)

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