Homework Answers
Answer is Anticipated sales for the next period
Explanation;
Break even point is computed by dividing the fixed cost by contribution margin per unit or contribution margi ratio. The selling price and variable cost per unit is required to compute the contribution margin per unit or contribution margin ratio.
Thus, three components necessary to compute the break evn point is Fixed cost, selling price and variable cost per unit.
Anticipated sales level of next period will not effect the break even point.
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Sales Mix and Break-Even
Analysis
Conley Company has fixed costs of $17,802,000.
The unit selling price, variable cost per unit, and
contribution margin per unit
for the company’s two products follow:
Product Model
Selling Price
Variable Cost per Unit
Contribution Margin per Unit
Yankee
$180
$99
$81
Zoro
225
135
90
The sales mix for products Yankee and Zoro is 80% and 20%,
respectively. Determine the break-even point in
units of Yankee and Zoro.
1 eBook Show Me How Sales...
Break-Even Sales Currently, the unit selling price of a product is $380, the unit variable cost is $310, and the total fixed costs are $1,155,000. A proposal is being evaluated to increase the unit selling price to $420. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. units
21-3 Exercises & Problems Break-Even Sales Currently, the unit selling price of a product is $210, the unit variable cost is $170, and the total fixed costs are $432,000. A proposal is being evaluated to increase the unit selling price to $230. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $230, and all costs remain constant. units
In 2016, Manhoff Company had a break-even point of $309,000 based on a selling price of $5 per unit and fixed costs of $126,000. In 2017, the selling price and the variable costs per unit did not change, but the break-even point increased to $453,000. ✓ Your answer is correct. Compute the variable costs per unit and the contribution margin ratio for 2016. (Round Variable cost per unit to 2 decimal places, e.g. 2.25 and Contribution margin ratio to 0...
Sales Mix and Break-Even
Analysis
Conley Company has fixed costs of $17,802,000.
The unit selling price, variable cost per unit, and
contribution margin per unit
for the company’s two products follow:
Product Model
Selling Price
Variable Cost per Unit
Contribution Margin per Unit
Yankee
$180
$99
$81
Zoro
225
135
90
The sales mix for products Yankee and Zoro is 80% and 20%,
respectively. Determine the break-even point in
units of Yankee and Zoro.
1 eBook Show Me How Sales...
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