Question
In: Accounting
Steven Company has fixed costs of $239,080. The unit selling price, variable cost per unit, and...
Steven Company has fixed costs of $239,080. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below.
| Product | Selling Price per unit |
Variable Cost per unit |
Contribution Margin per unit |
||||||
| X | $1,248 | $468 | $780 | ||||||
| Y | 473 | 253 | 220 | ||||||
The sales mix for products X and Y is 60% and 40% respectively.
Determine the break-even point in units of X and Y combined. Round
answer to nearest whole number.
units
Solutions
Expert Solution
| Answer | ||||
| Contribution margin per unit (a) | Sales mix (b) | Weighted Contribution margin (a*b) | ||
| Product X | $ 780 | 60% | $ 468 | |
| Product Y | $ 220 | 40% | $ 88 | |
| Weighted Contribution margin | $ 556 | |||
| Break even point in units (Total company) = Total fixed cost/ Weighted contribution margin | ||||
| $239080 / $556 | ||||
| 430 units | ||||
| Break even point of particular products = Break even point in units for Total company * Sales mix | ||||
| Product X | 430 * 60% | |||
| 258 | units | |||
| Product Y | 430 * 40% | |||
| 172 | units | |||
ekkarill92 answered 1 year agoRelated Solutions
Steven Company has fixed costs of $239,080. The unit selling price, variable cost per unit, and...
Steven Company has fixed costs of $239,080. The unit selling
price, variable cost per unit, and contribution margin per unit for
the company's two products are provided below.
Product
Selling Price
per unit
Variable Cost
per unit
Contribution Margin
per unit
X
$1,248
$468
$780
Y
473
253
220
The sales mix for products X and Y is 60% and 40% respectively.
Determine the break-even point in units of X and Y combined. Round
answer to nearest whole number.
units...
Given the following information: Selling Price (per unit): $10,000 Variable Costs (per unit): $7,000 Fixed Costs:...
Given the following information:
Selling Price (per unit): $10,000
Variable Costs (per unit): $7,000
Fixed Costs: $200,000
Required
Each of these are separate situations:
What is the break-even point in total sales in
dollars?
How many units need to be sold to make a profit of
$20,000?
How many units need to be sold to make a profit of
$20,000 if fixed costs increase from $200,000 to
$250,000?
How many units would they need to sell if they wanted
to...
Given the following information: Selling Price (per unit): $10,000 Variable Costs (per unit): $7,000 Fixed Costs:...
Given the following information:
Selling Price (per unit): $10,000
Variable Costs (per unit): $7,000
Fixed Costs: $200,000
Required
Each of these are separate situations:
What is the break-even point in total sales in
dollars?
How many units need to be sold to make a profit of
$20,000?
How many units need to be sold to make a profit of
$20,000 if fixed costs increase from $200,000 to
$250,000?
How many units would they need to sell if they wanted
to...
if fixed costs are $728,400, the unit selling price is $42, and the unit variable costs...
if fixed costs are $728,400, the unit selling price is $42, and
the unit variable costs are $27, what is the break-even sales
(units) if target profits are increased by $330,930?
A) 26,498
B) 22,062
C) 48,560
D) 70,622
if the contribution margin ratio for 4 Zsons Company is 30%,
sales were $843,000 and fixed costs were $113,295, what was the
income from operations?
A) 252,900
B) 139,605
C) 158,200
D) 377,650
Period Costs:
A) are expensed as costs are...
If fixed costs are $247,000, the unit selling price is $116, and the unit variable costs...
If fixed costs are $247,000, the unit selling price is $116, and
the unit variable costs are $73, what are the break-even sales in
units (rounded to a whole number)?
Given the following Selling Price: 50$ per unit Variable Cost: 40$ per unit Fixed Cost: 80,000$...
Given the following
Selling Price: 50$ per unit
Variable Cost: 40$ per unit
Fixed Cost: 80,000$ per unit
Calculate:
A. Contribution margin as well as the contribution margin
ratio
B. Profit(loss) if 7,200 units are sold
C. Margin of safety if 10,100 units are sold
D. Break even point in dollars
A firm’s fixed cost $50,000 and its variable cost is $3 per unit. The selling price...
A firm’s fixed cost $50,000 and its variable cost is $3 per
unit. The selling price $5 per unit. The management is considering
two projects but only one would be selected. Project A will result
in an increase in fixed cost, which will amount to $150,000 and a
decrease in variable cost which fall to $2. Project B is less
ambitious undertaking that results in fixed costs increasing to
$70,000 and variable costs decreasing to $2.30 per unit. Currently
55,000...
Exercise 5-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs...
Exercise 5-13 Changes in Selling Price, Sales Volume, Variable
Cost per Unit, and Total Fixed Costs [LO5-1, LO5-4]
Miller Company’s contribution format income statement for the
most recent month is shown below:
Total
Per Unit
Sales (36,000
units)
$
252,000
$
7.00
Variable expenses
144,000
4.00
Contribution margin
108,000
$
3.00
Fixed expenses
49,000
Net operating income
$
59,000
Required:
(Consider each case independently):
1. What is the revised net operating income if unit sales
increase by 15%?
2. What...
19) If fixed costs are $274,000, the unit selling price is $124, and the unit variable...
19)
If fixed costs are $274,000, the unit selling price is $124, and
the unit variable costs are $79, the break-even sales (units)
is
a.3,468 units
b.1,350 units
c.6,089 units
d.2,210 units
18)
Strait Co. manufactures office furniture. During the most
productive month of the year, 3,400 desks were manufactured at a
total cost of $83,000. In the month of lowest production, the
company made 1,140 desks at a cost of $64,400. Using the high-low
method of cost estimation, total...
A company has a selling price of $20 a unit, variable costs of $10 a unit,...
A company has a selling price of $20 a unit, variable costs of
$10 a unit, and fixed costs of $40,000.
A.What is the breakeven point in dollar sales?
B.What quantity must be sold to earn a profit of $60,000?
C.What is the Firm’s total contribution margin at breakeven?
D.How much revenue is needed to make an aftertax profit of
$120,000? Assume a tax rate of 40%.
E.Assume the company sells 12,000 units and the total
contribution margin increases by...
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