Multiple-Product Analysis, Changes in Sales Mix, Sales to Earn Target Operating Income
Compute the number of units of each product that must be sold for Basu to break even.
Assume that the marketing manager changes the sales mix of the two products so that the ratio is five basic sleds to three aerosleds. Repeat Requirement 1.
AnswerCheck Figure: Break-even basic sleds = 39,680
Conceptual Connection Refer to the original data. Suppose that Basu can increase the sales of aerosleds with increased advertising. The extra advertising would cost an additional $195,000, and some of the potential purchasers of basic sleds would switch to aerosleds. In total, sales of aerosleds would increase by 12,000 units, and sales of basic sleds would decrease by 5,000 units. Would Basu be better off with this strategy?
AnswerCheck Figure: Increase in total contribution margin = $320,000
Basu Company produces two types of sleds for playing in the snow: basic sled and aerosled. The projected income for the coming year, segmented by product line, follows:
The selling prices are $30 for the basic sled and $60 for the aerosled. (Round break-even packages and break-even units to the nearest whole unit.)
Required:
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Multiple-Product Analysis, Changes in Sales Mix, Sales to Earn Target Operating Income
Multiple-Froduct Analyss, Changes in Sales Mix, Sales to Earn Target Operating Income Basu Company produces two...
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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...
acct 2320
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24-8. Sales mix and break-even analysis. Rite-Beverage Bottling Company produces a variety e bottled drinks. The...
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Multiple-Product Breakeven Instructions Sales Mix and Break-Even Quantity Instructions Sales Mix and Break-Even Quantity Multiple-Product Breakeven 1 What is the sales mix of DVDs and equipment sets? S Cherry Blossom Products inc produces and sells yoga-training products how to DVDs and a basic equipment set blocks, strap and small piows, Last year, Cherry Blossom Products sold 13,500 DVDs and 4500 equipment sets Information on the two products is as follows 2 Compute the break-even quantity of each product The break...
Sales mix and break-even sales Obj. 5Data related to the expected sales of laptops and tablets for Tech Products Inc. for the current year, which is typical of recent years, are as follows: Products Unit Selling Unit Variable Sales Price Cost Mix Laptops $1,600 $800 40% Tablets 850 350 60% The estimated fixed costs for the current year are $2,498,600. Instructions 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point...
Multiple-Product Breakeven Instructions Sales Mix and Break-Even Quantity Instructions Cherry Blossom Products Inc. produces and sells yoga training products: how to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,590 DVDs and 4,530 equipment sets. Information on the two products is as follows: Equipment Sets $24.80 DVDs $7.70 4.10 Price Variable cost per unit 15.00 Total foxed cost is $78,220 Required: 1. What is the sales mix of DVDs and equipment...
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...
Problem 4-25 Sales Mix; Multi-Product Break-Even Analysis; Target Profit; Margin of Safety (LO6, LOT, L09) Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runners- Warm and Cozy. Current revenue, cost, and unit sales data for the two products appear below: points Skipped Selling price per pair Variable expenses per pair Number of pairs sold monthly Warm $9.00 $ 2.25 " 600 units C ozy $13.50 $ 6.75 200 units...
Sales Mix Biblio Files Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Basic and Deluxe. The company has compiled the following estimates for the new product offerings Type of Sales Price Variable Cost Bookshelf per Unit per Unit Basic $5.00 $1.75 Deluxe 9.00 8.10 The company is interested in determining how many of each type of bookshelf would have to be sold in order to break even. If we think...
Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $334,400, and the sales mix is 60% bats and 40% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $40 $30 Gloves 100 60 a. Compute the break-even sales (units) for both products combined. x units b. How many units of each product,...
24-8. Sales mix and break-even analysis. Rite-Beverage Bottling Company produces a variety e bottled drinks. The company has classified its products into these three basic categories SALES PRICE VARIABLE COST BRAND PER CASE PER CASE Trade-Name. True-Ade..$1.50 Dietary. $1.40 1.20 1.00 1.00 40 The fixed cost of the company is $37 240 annually and does not change with any changer product mix or with total volume changes of less than 50%. During 19A, sales of Trade-Name Dietary. Total sales revenue...
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