Please help with all 3 parts!
Salvadores Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows:
Product | Selling Price per Unit |
Variable Cost per Unit |
Snowboards | $340 | $160 |
Skis | $380 | $210 |
Poles | $50 | $30 |
a. Their sales mix is reflected in the ratio 7:3:2. What is the overall unit contribution margin for Salvadores with their current product mix?
Product | Selling Price per Unit |
Variable Cost per Unit |
Snowboards | $340 | $190 |
Skis | $390 | $220 |
Poles | $50 | $30 |
b. Their sales mix is reflected in the ratio 8:3:2. If annual fixed costs shared by the three products are $245,000, how many units of each product will need to be sold in order for Salvadores to break even?
Product | Ratio (mix) | Break-even per composite unit |
Number of Units per product |
Snowboards | 8 | ||
Skis | 3 | ||
Poles | 2 |
Overall Unit Contribution Margin $
Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows:
Product | Selling Price per Unit |
Variable Cost per Unit |
Snowboards | $340 | $150 |
Skis | $420 | $210 |
Poles | $60 | $10 |
c. Their sales mix is reflected in the ratio 7:3:1. If annual fixed costs shared by the three products are $241,200. Determine the break-even point in sales dollars.
Break-even point $
(a.) Calculation of the overall unit contributon margin for salvadores with current product mix-
(b.) Calculation of BEP -
BEP (in units) = Total fixed cost/(weighted average contribution margin per unit)
BEP (in unit) composite = 245000/134.62
= 1820 units
Snowboard units sold for break even = composite unit*sales mix of snowboard
= 1820*8/13
= 1120 units
Skies unit for break even = 1820*3/13
= 420 units
poles unit for break even = 1820*2/13
= 280 units
(c) Calculation of BEP in sales $ -
BEP (in units) composite = 241200/182.73
= 1320 units
units of snoboard = 1320*7/11 = 840 units
units of skies = 1320*3/11 = 360 units
units of poles = 1320*1/11 = 120 units
Total sales in $ = units of snowboard * sales price per unit of snowbaord + units of skies * sales price per unit of skies + units of poles * sales price per unit of poles
= 840*340 + 360*420 + 120*60
= 285600 + 151200 + 7200
= $ 444000
Please check with your answer and let me know.
Please help with all 3 parts! Salvadores Manufacturing builds and sells snowboards, skis and poles. The...
Salvadores Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Selling Price Variable Cost per Unit per Unit Product Snowboards $310 $190 Skis $410 $230 Poles $60 $10 Their sales mix is reflected in the ratio 8:3:2. What is the overall unit contribution margin for Salvadores with their current product mix? Overall Unit Contribution Margin $
and poles. The sales price and variable cost for each follows: Product per Unit Snowboards $190 per Unit $330 $390 $60 Skis $240 Poles $30 costs shared by the three products are $249,200, how many units of each product will need to be sold in order for Salvadores to break even? Break-even per composite unit Number of Units per product Product Ratio (mix) Snowboards Skis Poles
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