RST manufactures two products. Information about the two products are as follows:
Product A |
Product B |
|
Selling price per unit |
$100 |
$50 |
Variable costs per unit |
$60 |
$40 |
Contribution margin per unit |
$40 |
$10 |
The company expects fixed costs to be $420,000. The firm expects 60% of its sales (in units) to be Product A (a sales mix of 3:2).
Required:
A. |
Calculate the contribution margin per package. |
B. |
Determine the break-even point in units for Products A and B. |
C. |
Determine the level of sales (in dollars) necessary to generate operating income of $200,000. |
a) Contribution margin per package = (40*60%+10*40%) = 28 per package
b) Break even point = Fixed cost/Weighted average contribution = 420000/28 = 15000 Units
Product A = 15000*60 % = 9000 Units
Product B = 15000*40% = 6000 Units
c) Weighted average ratio = (40%*60%+20%*40%) = 32%
Required sales = (420000+200000)/.32 = $1937500
Product A = 1937500*60% = 1162500
Product B = 1937500*40% = 775000
RST manufactures two products. Information about the two products are as follows: Product A Product B...
Company manufactures two products. Information about the two products is as follows: Product A Product B $80 $30 Selling sales price per unit Variable Costs per unit $45 $15 The company expects fixed costs to be $189,000. The firm expects 60% of its sales (in units) to be Product A A. Determine the break-even point in units for Products A and B B. Determine the level of sales (in dollars) necessary to generate opening income of $155,000
Gibson Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 99 (66) $ 33 Supreme $131 (91) $ 40 Gibson expects to incur annual fixed costs of $139,620. The relative sales mix of the products is 60 percent for Super and 40 percent for Supreme Required a. Determine the total number of products (units of Super and Supreme combined) Gibson must sell to break...
Stuart Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 99 (69) $ 30 Supreme $126 (85) $ 41 3.25 Stuart expects to incur annual fixed costs of $144,480. The relative sales mix of the products is 60 percent for Super and 40 percent for Supreme. Required a. Determine the total number of products (units of Super and Supreme combined) Stuart must sell to...
Benson Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 90 (57) $ 33 Supreme $138 (92) S46 Benson expects to incur annual fixed costs of $206,280. The relative sales mix of the products is 60 percent for Super and 40 percent for Supreme. Required a. Determine the total number of products (units of Super and Supreme combined) Benson must sell to break even....
Rooney Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 92 (68) $ 24 Supreme $ 122 (81) $ 41 Rooney expects to incur annual fixed costs of $172,480. The relative sales mix of the products is 60 percent for Super and 40 percent for Supreme. Required a. Determine the total number of products (units of Super and Supreme combined) Rooney must sell to...
Exercise 3-15A Multiple product break-even analysis LO 3-6 Benson Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 108 (61) $ 47 Supreme $138 (88) $50 Benson expects to incur annual fixed costs of $192,800. The relative sales mix of the products is 60 percent for Super and 40 percent for Supreme. Required a. Determine the total number of products (units of Super and...
Finch Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super Supreme $ 96 $139 (61) (77) $ 35 $ 62 Finch expects to incur annual fixed costs of $215,500. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme. Required a. Determine the total number of products (units of Super and Supreme combined) Finch must sell to break...
Walton Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Walton expects to incur annual fixed costs of $133,760. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme. Required Determine the total number of products (units of Super and Supreme combined) Walton must sell to break even. How many units each of Super and Supreme must Walton sell to break even? Super Supreme s 97 $127 Sales price...
Question 1: CVP Time: 25 minutes Total: 20 marks Jonah Hill Company manufactures two products. Information about the two products is as follows: Product X Product Y Selling price per unit $80 $30 Variable costs per unit 45 15 Contribution margin $35 $15 per unit The company expects fixed costs to be $189,000. The firm expects 60% of its sales (in units) to be Product X and 40% to be Product Y (a sales mix of 3:2). a. Calculate the...
Exercise 3-15A (Algo) Multiple product break-even analysis LO 3-6 Fanning Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 91 (68) $ 23 Supreme $126 (82) $ 44 Fanning expects to incur annual fixed costs of $155,290. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme Required a. Determine the total number of products (units of...