minot Furniture sells two models of desks to retail customers—basic and adjustable (for those who want...

minot Furniture sells two models of desks to retail customers—basic and adjustable (for those who want the option to stand at their desk). Basic desks sell for $600 each and adjustable desks sell for $900 each. The variable cost of a basic desk is $360 and that of an adjustable desk is $450. Annual fixed costs at Minot Furniture are $243,000. The break-even point at the current sales mix is 750 total units.

Required:

How many basic desks and how many adjustable desks are sold at the break-even level?

What is the assumed sales mix?

Expert Solution

The answer has been presenetd in the supporting sheet. For detailed answer refer to the supporting sheet. For detailed answer refer to the supporting sheet.

ekkarill92 answered 1 year ago

Ewing Company sells household furniture. Customers who purchase furniture on the installment basis make payments in...

Ewing Company sells household furniture. Customers who purchase furniture on the installment basis make payments in equal monthly installments over a two-year period, with no down payment required. Ewing's gross profit on installment sales equals 40% of the selling price of the furniture. For financial accounting purposes, sales revenue is recognized at the time the sale is made. For income tax purposes, however, the installment method is used. There are no other book and income tax accounting differences, and Ewing's...

Elegant Furniture Company(Elegant) manufactures and sells modern furniture. The company’s products only include two models of...

Elegant Furniture Company(Elegant) manufactures and sells modern furniture. The company’s products only include two models of dining table: Deluxe and Simplicity. The selling prices and costs data for each unit of the products are as follows: Deluxe Simplicity $ $ Selling price 10,000 8,000 Direct materials (variable) 2,600 2,300 Direct labour (variable) 500 400 Manufacturing overhead (semi-variable, 90% fixed) 5,000 4,000 Selling expenses (variable) 400 400 Administrative expenses (fixed) 1,000 800 According to Elegant’s 2020 business plan, the company wants...

LearnCo manufactures and sells one product, an abacus for classroom use, with two models, the Basic...

LearnCo manufactures and sells one product, an abacus for classroom use, with two models, the Basic model and the Deluxe model. The company began operations on January 1, 20Y1, and is planning for 20Y2, its second year of operations, by preparing budgets from its master budget. The company is trying to decide how many units to manufacture, how much it might spend on direct materials and direct labor, and what their factory overhead expenses might be. In addition, the company...

LGF Inc. sells furniture for $16,525. customers can buy a 5 years warranty on this furniture...

LGF Inc. sells furniture for $16,525. customers can buy a 5 years warranty on this furniture for $5,000 up to 1year after the purchase date of the product. Furniture and warranty package costs $20,000 for special deal. On January 1, 2007, the company sold 5 special deal packages. The cost of the furniture sold was $68,000. The company paid cash of $700 for the cost of meeting the warranty during 2007. The company recognizes revenue annually on the warranty agreement based...

EJH Cinemas, a movie theater next to your university, attracts two types of customers: those who...

EJH Cinemas, a movie theater next to your university, attracts two types of customers: those who are associated with the university (students, faculty, and staff) and locals who live in the surrounding area. There are 10,000 university customers interested in purchasing movie tickets from EJH Cinemas, with a maximum willingness to pay of $7 per ticket. There are 20,000 local customers interested in purchasing tickets, with a maximum willingness to pay of $9 per ticket. The movie theater incurs a...

(a) Wilder Company manufactures two models of its banjo, the Basic and the Luxury. The Basic...

(a) Wilder Company manufactures two models of its banjo, the Basic and the Luxury. The Basic model requires 10,000 direct labor hours and the Luxury requires 30,000 direct labor hours. The company produces 3,400 units of the Basic model and 600 units of the Luxury model each year. The company inspects one Basic for every 100 produced, and inspects one Luxury for every 10 produced. The company expects to incur $84,600 of total inspecting costs this year. How much of...

The Notip Table Company sells two models of its patented five-leg tables. The basic version uses...

The Notip Table Company sells two models of its patented five-leg tables. The basic version uses a wood top, requires 0.6 hour to assemble, and sells for a profit of $200. The deluxe model takes 1.5 hours to assemble because of its glass top, and sells for a profit of $350. Over the next week the company has 300 legs, 50 wood tops, 35 glass tops, and 63 hours of assembly available. Assuming that everything produced can be sold, you...

1. The Notip Table Company sells two models of its patented five-leg tables. The basic version...

1. The Notip Table Company sells two models of its patented five-leg tables. The basic version uses a wood top, requires 0.6 hours to assemble and sells for a profit of $200. The deluxe model takes 1.5 hours to assemble because of its glass top, and sells for a profit of $350. Over the next week the company has 300 legs, 50 wood tops, 35 glass tops, and 63 hours of assembly available. Notip wishes to determine a maximum profit...

Noland Company manufactures two models of its banjo, the Basic and the Luxury. The Basic model...

Noland Company manufactures two models of its banjo, the Basic and the Luxury. The Basic model requires 10000 direct labor hours and the Luxury requires 30000 direct labor hours. The company produces 3400 units of the Basic model and 600 units of the Luxury model each year. The company inspects one Basic for every 100 produced, and inspects one Luxury for every 10 produced. The company expects to incur $1316000 of total inspecting costs this year. How much of the...

You want to start your own retail furniture store, and you have already gathered a great...

You want to start your own retail furniture store, and you have already gathered a great deal of information on location, layout, form of ownership, business failure rates, etc. In applying for a loan, you notice that a projected income statement is required. Your problem is to complete this projected "P&L," given a desired income of $23,000 and the following published statistics. Cost of Goods Sold 60.3 percent of net sales Operating Expenses 36.4 percent of net sales Gross Profit...

Question