Question

In: Accounting

The firm Prussian Clausewitz produces three products: Blücher, Napoleon, and Wellington. These three products are sold...

The firm Prussian Clausewitz produces three products: Blücher, Napoleon, and Wellington. These three products are sold at a sales mix of 1:3:2, respectively.

Blücher Napoleon Wellington
Price (per unit) $5,000 $18,000 $15,000
Variable Cost per Unit $4,000 $5,000 $5,000

The firm has $6,000,000 in fixed costs. How many Napoleon units must the firm sell at breakeven (round up to nearest unit if necessary)?

Selected Answer: d.

462 Napoleon units.

Answers: a.

100 Napoleon units.

b.

1,385 Napoleon units.

c.

300 Napoleon units.

d.

462 Napoleon units.

Solutions

Expert Solution


Related Solutions

MC Qu. 45 Garrison Co. produces three products ... Garrison Co. produces three products — X,...
MC Qu. 45 Garrison Co. produces three products ... Garrison Co. produces three products — X, Y, and Z — from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Last year all three products were processed beyond split-off. Joint production costs for the year were $120,000. Sales values and costs needed to...
A firm produces two products, the respective quantities of which are ?1 and ?2. The firm...
A firm produces two products, the respective quantities of which are ?1 and ?2. The firm has agreed to produce a total of 100 units of both products for a client. The total cost TC for the firm is ??(?1, ?2) = 2?1 + ?1?2 + 4?2 with demand functions ?1 = 20 − ?1 + ?2 and ?2 = 30 + 2?1 − ?2. Show that the firm’s maximum profit is 2,204, where profit is ?(?1, ?2) = ?1?1...
THREE-PRODUCTS COMPANY MAKES AND SELLS THREE PRODUCTS: TABLES, CHAIRS, AND SHELVES. FOR EACH TABLE SOLD, THEY...
THREE-PRODUCTS COMPANY MAKES AND SELLS THREE PRODUCTS: TABLES, CHAIRS, AND SHELVES. FOR EACH TABLE SOLD, THEY SELL 6 CHAIRS AND 3 SHELVES. SELLING PRICES FOR TABLES, CHAIRS, & SHELVES ARE $50, $10, AND $15, RESPECTIVELY; WHILE THE VARIABLE COSTS ARE $40, $5, AND $7, RESPECTIVELY. THE TOTAL FIXED COSTS ARE $12,800. 1. CALCULATE THE BREAK-EVEN IN UNITS AND SALES-DOLLARS. 2. IF THE TAX-RATE IS 30% AND THE DESIRED AFTER-TAX PROFIT IS $4,480, WHAT IS THE TARGET SALES IN UNITS AND...
A manufacturing company produces three products. All products need to be processed on machines. For the...
A manufacturing company produces three products. All products need to be processed on machines. For the production times, product 1 uses 15 minutes per unit, product 2 uses 17 minutes per unit and product 3 uses 20 minutes per unit. The total regular machine time is 2500 minutes per day. The daily demand of product 1 is between 150 to 200 units and that of product 2 is no more than 55 units and that of product 3 is no...
Gluth Company makes three paint products in a single facility. These products are produced and sold...
Gluth Company makes three paint products in a single facility. These products are produced and sold in 5 gallon units. Each has the following unit product costs: Products A B C Direct materials ......................................... $22.50 $22.40 $29.20 Direct labor ................................................ 13.60 11.40 12.50 Variable manufacturing overhead ............. 3.00 3.40 4.50 Total variable unit product cost ................. $39.10 $37.20 $46.20 Additional data concerning these products are listed below. Products A B C Mixing minutes per unit.............................. 3.30 1.70 1.80 Selling price...
Project C: The project is outside of the normal products sold of the firm. The project...
Project C: The project is outside of the normal products sold of the firm. The project is a reconsideration of a project proposed two years ago by a former manager. At that time a marketing study costing $200,000 was done; however, the project was not undertaken. Now the firm needs to consider if this project is worth the firm’s capital investment dollars. This project would require investment in equipment of $20,000,000 with an additional cost of $5,000,000 in installation fees....
1. A company produces products A and B using the same plant. Product A is sold...
1. A company produces products A and B using the same plant. Product A is sold in the market at a price of 300 EUR, which is 60 EUR above its cost per unit. A company produces 2.000 units of product A and 1.000 units of product B. Product B’s cost per unit is 150 EUR, while the price at which product B is sold in the market is 120 EUR. Costs per unit for both products were calculated by...
Wilson Industries produces an assembly used in the production of various products. The assembly is sold...
Wilson Industries produces an assembly used in the production of various products. The assembly is sold to various manufacturers throughout the United States. The unit selling price is $ 175.00. A projected sales forecast (in units) follows:                                     January           18,000                                                                         February         24,000                                     March              30,000                                                 April                 37,000                                     May                 32,000 The following information pertains to production policies and manufacturing specifications followed by Wilson Industries: a.    Finished goods inventory on January 1st was 5,400 units. The desired ending...
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit):...
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit): Product A B C Selling price $ 84.00 $ 70.00 $ 74.00 Variable expenses: Direct materials 25.20 21.00 9.00 Other variable expenses 25.20 31.50 42.80 Total variable expenses 50.40 52.50 51.80 Contribution margin $ 33.60 $ 17.50 $ 22.20 Contribution margin ratio 40 % 25 % 30 % The company estimates that it can sell 750 units of each product per month. The same...
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit):...
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit): Product A B C Selling price $ 88.00 $ 72.00 $ 78.00 Variable expenses: Direct materials 26.40 18.00 9.00 Other variable expenses 26.40 36.00 45.60 Total variable expenses 52.80 54.00 54.60 Contribution margin $ 35.20 $ 18.00 $ 23.40 Contribution margin ratio 40 % 25 % 30 % The company estimates that it can sell 900 units of each product per month. The same...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT