Question

Schedu h ome Chapter 18 Homework Help Seve Bleu Now 20. 1 NOV Check my work [The following information applies to the questions displayed below) Part 1 of 2 Praveen Co manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang hiding that has not been as profitable as planned. Since Product XT is manufactured and marketed independently of the other products its total costs can be precisely measured. Next year's plans call for a $200 selling price per 100 yards of XT rope Its fixed costs for the year are expected to be $270.000, up to a maximum capacity of 700.000 yards of rope, Forecasted variable costs are $140 per 100 yards of XT rope Dept DUH My Se 1. Estimate Product XT's break-even point in terms of sales units and sales dollars. (unit = 100 yards) BUT pertoys DUKE Contribution margin Contribution Margin ratio Contbution magna (a) Estimate Product XT's break even point in terms of sales units. (1 unit - 100 yards) Choose Denomination 1) Estimate Product XT's break even point in terms of sales dollars Choose Denomination halve Doll < Prev 10 of 10 !!! Next >

Answer 1

Selling Price per Unit (100 yards)	200
Variable Cost per unit	140
Contribution Margin (A)	60
Contribution Margin (%) (C)	30.00%
Fixed Cost (B)	270000
Breakeven Sales (Units) (B)/ (A)	4500
Breakeven Sales ($) (B) / (C)	900000