Question
In: Accounting
Mayfield Company sells two products, Blue models and Plaid models. Blue models sell for $41per unit...
Mayfield Company sells two products, Blue models and Plaid models. Blue models sell for $41per unit with variable costs of $40 per unit. Plaid models sell for $53
per unit with variable costs of $15 per unit. Total fixed costs for the company are $20,240. Mayfield Company typically sells three Blue models for every four
Plaid models. What is the breakeven point in total units? (Round any intermediary calculations to the nearest whole number.)
A. 12,891units
B. 133 units
C. 920 units
D. 131 units
Solutions
Expert Solution
| Blue | Plaid | ||
| Selling price | $ 41 | $ 53 | |
| less: Variable Cost | $ -40 | $ -15 | |
| Contribution Margin | $ 1 | $ 38 | |
| Let units | 3x | 4x | |
| Total Con margin | 3x | 152x | |
| 3x+152x-$20,240= | $ - | ||
| 155x= | $ 20,240 | ||
| x= | 131 | ||
| Blue= | 131*3 | 393 | |
| Plaid | 131*4 | 524 | |
| Total | 917 | ||
| R/off | 920 |
ekkarill92 answered 7 months agoRelated Solutions
Plaid Manufacturing Co. produces two products: G1 and M1. The company uses an activity based costing...
Plaid Manufacturing Co. produces two products: G1 and M1. The
company uses an activity based costing system. The following are
the activities, budgeted total cost and cost drivers per activity
for the year 20x9:
Activity
Budgeted Cost
Cost Base
Cost Base Volume
Assembly
$861050
# of DL hours
36332
Inspection
$669581
# of units
20525
Plaid Manufacturing has budgeted to produce 3,000 units of G1.
G1 requires 17790 hours of direct labour.
What is the overhead cost per unit for...
Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are...
Patriot Co. manufactures and sells three products: red, white,
and blue. Their unit selling prices are red, $20; white, $35; and
blue, $65. The per unit variable costs to manufacture and sell
these products are red, $12; white, $22; and blue, $50. Their sales
mix is reflected in a ratio of 5:4:2 (red:white:blue). Annual fixed
costs shared by all three products are $250,000. One type of raw
material has been used to manufacture all three products. The
company has developed...
National Co. manufactures and sells three products: red, white, and blue. Their unit sales prices are...
National Co.
manufactures and sells three products: red, white, and blue. Their
unit sales prices are red, $46; white, $76; and blue, $101. The per
unit variable costs to manufacture and sell these products are red,
$31; white, $51; and blue, $71. Their sales mix is reflected in a
ratio of 2:2:1 (red:white:blue). Annual fixed costs shared by all
three products are $141,000. One type of raw material has been used
to manufacture all three products. The company has developed...
National Co. manufactures and sells three products: red, white, and blue. Their unit sales prices are...
National Co.
manufactures and sells three products: red, white, and blue. Their
unit sales prices are red, $47; white, $77; and blue, $102. The per
unit variable costs to manufacture and sell these products are red,
$32; white, $52; and blue, $72. Their sales mix is reflected in a
ratio of 5:4:2 (red:white:blue). Annual fixed costs shared by all
three products are $142,000. One type of raw material has been used
to manufacture all three products. The company has developed...
National Co. manufactures and sells three products: red, white, and blue. Their unit sales prices are...
National Co. manufactures and sells three products: red, white,
and blue. Their unit sales prices are red, $53; white, $83; and
blue, $108. The per unit variable costs to manufacture and sell
these products are red, $38; white, $58; and blue, $78. Their sales
mix is reflected in a ratio of 5:4:2 (red:white:blue). Annual fixed
costs shared by all three products are $148,000. One type of raw
material has been used to manufacture all three products. The
company has developed...
National Co. manufactures and sells three products: red, white, and blue. Their unit sales prices are...
National Co.
manufactures and sells three products: red, white, and blue. Their
unit sales prices are red, $46; white, $76; and blue, $101. The per
unit variable costs to manufacture and sell these products are red,
$31; white, $51; and blue, $71. Their sales mix is reflected in a
ratio of 2:2:1 (red:white:blue). Annual fixed costs shared by all
three products are $141,000. One type of raw material has been used
to manufacture all three products. The company has developed...
Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are...
Patriot Co.
manufactures and sells three products: red, white, and blue. Their
unit selling prices are red, $46; white, $76; and blue, $101. The
per unit variable costs to manufacture and sell these products are
red, $31; white, $51; and blue, $71. Their sales mix is reflected
in a ratio of 2:2:1 (red:white:blue). Annual fixed costs shared by
all three products are $141,000. One type of raw material has been
used to manufacture all three products. The company has developed...
National Co. manufactures and sells three products: red, white, and blue. Their unit sales prices are...
National Co. manufactures and sells three products: red, white,
and blue. Their unit sales prices are red, $56; white, $86; and
blue, $111. The per unit variable costs to manufacture and sell
these products are red, $41; white, $61; and blue, $81. Their sales
mix is reflected in a ratio of 2:2:1 (red:white:blue). Annual fixed
costs shared by all three products are $151,000. One type of raw
material has been used to manufacture all three products. The
company has developed...
Part I: Wilson Company sells two products, X and Y. The company expects to sell 100,000...
Part I:
Wilson Company sells two products, X and Y. The company expects
to sell 100,000 units of X at an average price of $20 per unit
during the upcoming year. Actual results are 98,600 units sold at
an average price of $22 per unit.
Required: Calculate the overall sales variance, the sales price
variance, and the sales volume variance. Indicate whether each
variance is favorable or unfavorable.
Part II:
Capitol Manufacturing Co. is currently making Part XYZ,
producing 80,000...
Barkley Company sells two products, red cups and black mugs. Barkley predicts that it will sell...
Barkley Company sells two products, red cups and black mugs.
Barkley predicts that it will sell
2,600 red cups and 700black mugs in the next period. The unit
contribution margins for red cups and black mugs are
$ 3.00 and $ 3.90 respectively. What is the weighted average
unit contribution margin? (Round the final answer to the nearest
cent.)
A.$ 11.14
B.$ 4.05
C.$ 0.83
D.$ 3.19
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- A labor market has 50,000 people in the labor force. Each month, a fraction p of...
- A road with a radius of 72 m is banked so that a car can navigate...
- 1) If you had not dried the solid, would the calculated percent yield have been higher,...
- Two structures of alanine can be drawn that have a net charge of zero, but the...
- Co(II) was used as an internal standard to analyze a sample of Ti(IV) with atomic absorption...
- Matlab Programming Write an M-file to read a real-valued vector of any length from the keyboard...
- TASK back to top In the contemporary management environment, mergers and acquisitions are hot topics; particularly...
ADVERTISEMENT