Question

AND 1 THE USE OF CALCULATORS SPREADSHEETS 2. PLEASE MAKE SURE TO WRITE Stolal ANSWER EXPLANATIONS THAT ARE SUPPORTED BY YOUR CALCULATIONS WHEN ASKED IN A GINEN QUESTION 3. PLEASE USE EXCEL TO CALCULATE AND SHOW WORKINGS. THANKS.

Answer 1

Answer:

Total Composite Unit 50 Selling price per composite Unit Ratio Selling price per unit Towels 5 Swim Suits Beach Accessories 10 $ Selling price per composite Unit (A) 125 $ 150 325 Total Composite Unit Variable Cost per Composite Unit Ratio Variable cost per unit Towels Swim Suits 5 Beach Accessories 10 TS Variable Cost per Composite Unit (B) 50 155 Break even Units Break-even point in composite units Choose Numerator Choose Denominator = Contribution margin per Total Fixed Costs comosite unit (A) - (B) = $ 68,000 170 = Break even Units 400 Composite Units Break even points in units and sales dollar of each individual product Number per Composite Number of Composite Answer: Unit Sales at Dollar sales at the Unit units to break even the break even point break even point Towels 400 2,000 $ 20,000 Swim Suits 400 2,000 $ 50,000 Beach Accessories 400 4,000 $ 60,000

Calculation of units to be sold for Operating proft of $102,000: $ Required Operating Profit Add: Fixed Cost Required Contibution Margin (D) 102,000 68,000 170,000 $ Contribution Margin per Composite Unit (C)=(A) - (B) 170 Required Composite units to be sold (E)=(D)/(C) 1,000 Product Sales Mix (Y) Required units to be sold (E) x (Y) 5,000 Towels Swim Suits Beach Accessories 5oon 10,000