3. Sales mix and CVP Analysis: Goalie’s Ball, Inc. produces and sells three different types of...

3. Sales mix and CVP Analysis: Goalie’s Ball, Inc. produces and sells three different types of soccer balls: basic, deluxe, and pro. Monthly information regarding the three types of balls are shown below:

	Basic	Deluxe	Pro
Sales volume (Units)	5,500	4,000	500
Price per unit	$20.00	$35.00	$60.00
VC per unit	$8.00	$19.00	$32.00

Total Fixed Costs (FC): $108,500

Determine the sales mix percentage (%) for the three products.
Determine the contribution margin (CM) per unit for each of the three products.
Calculate the weighted average contribution margin (WACM) per unit (round your final answer to two decimal places).
Calculate the total number of units that Goalie’s Ball’s must sell to break-even. Round up to the nearest whole unit.
Based on sales mix, calculate the number of units of each type of ball that would be sold at the firm’s break-even point.

Expert Solution

a.)		Basic	Deluxe	Pro
	Sales Mix Percentage	55%	40%	5%
		=5500/(5500+4000+500)	=4000/(5500+4000+500)	=500/(5500+4000+500)

b.)		Basic	Deluxe	Pro
	Sales Price per unit	20	35	60
	Less: VC per unit	8	19	32
	Contribution margin per unit $	12	16	28

c.)		Basic	Deluxe	Pro
	Contribution margin per unit	12	16	28
	x Sales Mix %	55%	40%	5%
	Weighted Average Contribution margin	6.60	6.40	1.40

	Weighted Average Contribution margin	$ 14.40	=6.6+6.4+1.4


d.)	Total number of units that Goalie’s Ball’s must sell to break-even	7,535	=108500/14.4

e.)	Basic	4,144	=7535*55%
	Deluxe	3,014	=7535*40%
	Pro	377	=7535*5%
	Total	7,535

ekkarill92 answered 2 years ago

3. Sales mix and CVP Analysis: Goalie’s Ball, Inc. produces and sells two different types of...

3. Sales mix and CVP Analysis: Goalie’s Ball, Inc. produces and sells two different types of soccer goals: basic and premium. Monthly information regarding the two types of goals are shown below: Basic Premium Total Sales $ 1,080,000 $720,000 $1,800,000 Variable costs $315,400 $294,100 $609,500 Fixed expenses are $517,250 per month in total for the company. Determine the sales mix for the two products Determine the contribution margin ratio for each of the two products (round your decimal answer to...

CVP Analysis and Sales Mix (Multiple Products). Sierra Books Incorporated produces two different products with the...

CVP Analysis and Sales Mix (Multiple Products). Sierra Books Incorporated produces two different products with the following monthly data (this is the base case). Text Lecture Notes Total Selling price per unit $100 $12 Variable cost per unit $60 $3 Expected unit sales 21,000 14,000 35,000 Sales mix 60 percent 40 percent 100 percent Fixed costs $750,000 Assume the sales mix remains the same at all levels of sales except for requirement i. Required: Round to the nearest unit of...

3-21 Breakeven analysis; multiproduct CVP analysis (LO 1, 5) Kitchenware, Inc., sells two types of water...

3-21 Breakeven analysis; multiproduct CVP analysis (LO 1, 5) Kitchenware, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $15 and are sold for $30. Glass pitchers cost $24 and are sold for $45. All other costs are fixed at $982,800 per year. Current sales plans call for 14,000 plastic pitchers and 42,000 glass pitchers to be sold in the coming year. Required a. How many pitchers of each type must be sold to...

A company sells three products A, B and C in a 3:3:4 sales mix. Sales price: ...

A company sells three products A, B and C in a 3:3:4 sales mix. Sales price: A - $10 B -$8 C - $6 Variable cost: A - $7 B- $3 C - $3 Quantity sold A 6,000 B6000 C8000 Fixed costs are $36,000 A) 6% - Calculate breakeven in total sales dollars and in units of the 3 products B) 5% - What is the total income the company can earn with this sales mix? Say the sales...

Part II - Effect of Sales Mix on CVP Analysis ** Round all answers to two...

Part II - Effect of Sales Mix on CVP Analysis ** Round all answers to two decimal places.** Also can you please how work so i can understand Fat Cat Furniture store sells two types of products; cat beds and scratching posts. Over the past year Fat at sold 6,000 cat beds and 4,000 scratching posts, the sales mix of 6,000 beds to 4,000 posts creates a percentage of 60% for the cat beds and 40% for the scratching posts....

CVP Analysis; Break-even point (2pts): Diagram, Inc., produces and sells a single product whose selling price...

CVP Analysis; Break-even point (2pts): Diagram, Inc., produces and sells a single product whose selling price is $240.00 per unit and whose variable expense is $72.00 per unit. The company's fixed expense is $372,960 per month. Determine the monthly break-even in: a) unit sales volume b) total dollar sales CVP Analysis; Target Profit (2pts): L. Gott Corporation produces and sells a single product. Data concerning that product appear below: Selling price per unit $ 230.00 Variable expense per unit $...

CVP Analysis (9pts): The Ood Sphere, Ltd. produces and sells a single product, gaming headsets, with...

CVP Analysis (9pts): The Ood Sphere, Ltd. produces and sells a single product, gaming headsets, with the following information: Per unit: Per month: Selling price $79.00 Variable manufacturing costs: Direct Materials $18.00 Direct Labor $7.75 Variable Factory OH $6.00 Fixed manufacturing costs (Fixed OH) $28,350 Variable selling and administrative costs $10.50 Fixed selling and administrative costs $17,180 The company sells 1,500 units during the month ended February 28th. (3pts) Prepare a contribution margin income statement for February at the current sales...

Barram, Inc. sells specialty golf clubs. He sells three different types of drivers; the Bear, the...

Barram, Inc. sells specialty golf clubs. He sells three different types of drivers; the Bear, the Lion, and the Eagle. For the next year, Barram estimates he will sell 16,000 units of the Bear, which has a variable cost of $35/unit, 24,000 units of the Lion, which has a variable cost of $40/unit, and 40,000 units of the Eagle, which has a variable cost of $55/unit. All drivers are sold for $100 per driver. He has annual fixed costs of...

Graham Inc. produces three different types of chairs: an outdoor chair, an office chair, and a...

Graham Inc. produces three different types of chairs: an outdoor chair, an office chair, and a kitchen chair. The outdoor chairs are made entirely of plastic. The office chairs have a plastic base and are covered in leather. The kitchen chairs are made out of wood with a leather seat. As the controller, you are expected to prepare Graham 's operating budget for January of 2021. Here is Graham's balance sheet as of 12/31/2020: Cash 12100 AR 9000 DM 810875...

6. CVP Analysis (9pts): The Ood Sphere, Ltd. produces and sells a single product, gaming headsets,...

6. CVP Analysis (9pts): The Ood Sphere, Ltd. produces and sells a single product, gaming headsets, with the following information: Per unit: Per month: Selling price $79.00 Variable manufacturing costs: Direct Materials $18.00 Direct Labor $7.75 Variable Factory OH $6.00 Fixed manufacturing costs (Fixed OH) $28,350 Variable selling and administrative costs $10.50 Fixed selling and administrative costs $17,180 The company sells 1,500 units during the month ended February 28th. (3pts) Prepare a contribution margin income statement for...

Question