Question

In: Accounting

The nut house sells almonds, cashews, and pistachios. They sold 10,000 cans last year. Pistachios outsold...

The nut house sells almonds, cashews, and pistachios. They sold 10,000 cans last year. Pistachios outsold cashews by a margin of 2 to 1 in cans. sales of almonds were half the sales of cashews in cans. fixed costs for the nut house are 20,000 . almonds: unit sales Price:8.00 unit variable:4.00 cashews:unit sales price:10.00 unit variable:5.00 Pistachios: unit sales price:6.00 unit variable cost: 4.00 what is the breakeven sales volume and dollars for each nut rounded?

Solutions

Expert Solution

A PU Sale Price PU* Qty VC PU* Qty Sales-Variable Cost
Ratio of Sales Sale Volume Split Basis Ratio Sale Price Variable Cost Sale Price Variable Cost CM
Almonds 0.50 1429 8.00 4.00 11429 5714 5714
Cashews 1.00 2857 10.00 5.00 28571 14286 14286
Pistachios 2.00 5714 6.00 4.00 34286 22857 11429
3.50 10000 31429
Weighted Av CM PU 3.14 (31429/10000)
Break Even Point:
In Sales Units:
Fixed Cost 20000
Weighted Av CM PU 3.14
Break Even Units 6364
Break Up:
Ratio of Sales Units
Almonds 0.50 909 (6364/3.5*0.5)
Cashews 1.00 1,818 (6364/3.5*1)
Pistachios 2.00 3,636 (6364/3.5*2)
3.50 6,364
Break Even Point:
Units Sales Price PU Sales Value
Almonds 909 8.00 7273
Cashews 1,818 10.00 18182
Pistachios 3,636 6.00 21818
6,364 47273

ekkarill92 answered 5 months ago
Next > < Previous

Related Solutions

The nut house sells almonds, cashews, and pistachios. They sold 10,000 cans last year. Pistachios outsold...
The nut house sells almonds, cashews, and pistachios. They sold 10,000 cans last year. Pistachios outsold cashews by a margin of 2 to 1 in cans. sales of almonds were half the sales of cashews in cans. fixed costs for the nut house are 20,000 . almonds: unit sales Price:8.00 unit variable:4.00 cashews:unit sales price:10.00 unit variable:5.00 Pistachios: unit sales price:6.00 unit variable cost: 4.00 what is the breakeven sales volume and dollars for each nut rounded?
Almonds R Us (ARU) processes and sells almonds. ARU buys almonds from California and roasts, seasons,...
Almonds R Us (ARU) processes and sells almonds. ARU buys almonds from California and roasts, seasons, and packages them for resale. Currently the firm offers 2 different types of almonds to gourmet shops in one-pound bags. The major cost is direct materials; however, a substantial amount of factory overhead is incurred in the predominantly automated roasting and packing process. ARU prices its nuts at full product cost, including allocated overhead, plus a markup of 30%. Data for the current budget...
Almonds R Us (ARU) processes and sells almonds. ARU buys almonds from California and roasts, seasons,...
Almonds R Us (ARU) processes and sells almonds. ARU buys almonds from California and roasts, seasons, and packages them for resale. Currently the firm offers 2 different types of almonds to gourmet shops in one-pound bags. The major cost is direct materials; however, a substantial amount of factory overhead is incurred in the predominantly automated roasting and packing process. ARU prices its nuts at full product cost, including allocated overhead, plus a markup of 35%. Data for the current budget...
Corp. manufactures and sells a number of products, including Product G 10,000 units were sold last...
Corp. manufactures and sells a number of products, including Product G 10,000 units were sold last year. Results for last year for the manufacture and sale of Product G are a follows: Sales $750,000 Less expenses: Variable production cost $450,000 Sales commissions 110,000 Salary of product manager 95,000 Fixed product advertising 80,000 Fixed manufacturing overhead 70,000 Net Operating loss 805,000 ($55,000) A) Beta is trying to decide whether to discontinue the manufacture and sale of Product G. All expenses other...
Last year, Carriage House Corporation had sales of $18 million and costs of goods sold of...
Last year, Carriage House Corporation had sales of $18 million and costs of goods sold of $3 million. Operating expenses amounted to $2,500,000. The firm had $8 million in 6.5% bonds outstanding. The firm had $830,000 in depreciation expense. Also, Carriage House sold 1,250 shares of Textron Corporation stock for $150 per share. Carriage House had purchased the shares for $110 per share two years ago. Carriage House also sold land for $2.8 million that it had purchased earlier for...
Cami Cakes sells cakes and pies. Last year it sold on an average of 1,000 cakes...
Cami Cakes sells cakes and pies. Last year it sold on an average of 1,000 cakes per month and had the following average monthly total costs:( Rent $1,000 Materials 10,000 Hourly labor for production 8,000 Manager's salary 3,000 The normal selling price is $25.00 per cake, and Cami usually sells 1,000 cakes per month. Wal-Mart has offered to pay Cami's $20.00 per cake to supply them with 500 cakes during the next month. (Assume that this is a one-time sale...
Jan sold her house on December 31 and took a $10,000 mortgage as part of the...
Jan sold her house on December 31 and took a $10,000 mortgage as part of the payment. The 10-year mortgage has a 11% nominal interest rate, but it calls for semiannual payments beginning next June 30. Next year Jan must report on Schedule B of her IRS Form 1040 the amount of interest that was included in the two payments she received during the year. a. What is the dollar amount of each payment Jan receives? Round your answer to...
Cool Gafitas Inc. sells sunglasses. Last year the glasses sold for $ 35 each, with variable...
Cool Gafitas Inc. sells sunglasses. Last year the glasses sold for $ 35 each, with variable costs per goggle of $ 26 and fixed operating costs of $ 25,000. How many glasses does Cool Glasses have to sell this year to break even considering the aforementioned costs, given the following scenarios? All numbers remain the same as last year. (3 points) Fixed operating costs increase to $ 28,000, other items remain the same. (3 points) The sale price is increased...
Cool Gafitas Inc. sells sunglasses. Last year the glasses sold for $ 35 each, with variable...
Cool Gafitas Inc. sells sunglasses. Last year the glasses sold for $ 35 each, with variable costs per goggle of $ 26 and fixed operating costs of $ 25,000. How many glasses does Cool Glasses have to sell this year to break even considering the aforementioned costs, given the following scenarios? All numbers remain the same as last year. (3 points) Fixed operating costs increase to $ 28,000, other items remain the same. (3 points) The sale price is increased...
Swifty’s Nut House is a processor and distributor of a variety of different nuts. The company...
Swifty’s Nut House is a processor and distributor of a variety of different nuts. The company buys nuts from around the world and roasts, seasons, and packages them for resale. Swifty’s Nut House currently offers 15 different types of nuts in one-pound bags through catalogs and gourmet shops. The company’s major cost is that of the raw nuts; however, the predominantly automated roasting and packing processes consume a substantial amount of manufacturing overhead cost. The company uses relatively little direct...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT