Question
In: Accounting
A company sells two products. Information about two products is as follows: Product A: Sales Units-1200...
A company sells two products. Information about two products is as follows:
Product A:
Sales Units-1200
Selling price per unit-$20
variable costs per unit 11
Product B:
Sales unit- 800
Selling price per unit- $25
Variable costs per unit- 18
If fixed costs are expected to be $12,300, what is the margin of safety?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Jonah Hill Company manufactures two products. Information about the two products is as follows: Product...
Jonah Hill Company manufactures two products. Information
about the two products is as follows:
Product X
Product Y
Selling price per unit
$80
$30
Variable costs per unit
40
20
Contribution margin per unit
$40
$10
The company expects fixed costs to be $185,000. The firm
expects 70% of its sales (in units) to be Product X and 30% to be
Product Y (a sales mix of 7:3).
a. Calculate the weighted average contribution margin or
contribution margin by...
25) A company sells two products with information as follows: A B Sales price per unit...
25) A company sells two products with information as
follows:
A
B
Sales price per unit
$12
$28
Variable cost per unit
$10
$12
The products are machine made. Four units of product A can be
made with one machine hour and two units of product B can be made
with one machine hour. The company has a maximum of 5,000 machine
hours available per month. The company can sell up to 18,000 units
of product A per month, and...
Norman Berhad sells two products; product X and product Y. The information about sales price, variable...
Norman Berhad sells two products; product X and product Y. The
information about sales price, variable expenses and total fixed
expenses is given below:
Product X
Product Y
Selling price per unit
RM50
RM100
Variable expenses per unit
RM30
RM40
The total monthly fixed expenses of the company are RM 270,000.
Norman Berhad wants to generate a sales revenue of RM 1,000,000 in
the next month. To obtain this goal the company has the following
options:
Option 1: Sell 6,000...
Lindstrom Company produces two fountain pen models. Information about its products follows: Product A Product B...
Lindstrom Company produces two fountain pen models. Information
about its products follows:
Product A
Product B
Sales revenue
$
120,000
$
125,000
Less: Variable costs
60,000
66,000
Contribution margin
$
60,000
$
59,000
Total units sold
7,000
7,000
Lindstrom’s fixed costs total $84,500.
Required:
1. Determine Lindstrom’s weighted-average unit
contribution margin and weighted-average contribution margin ratio.
(Round your weighted-average CM to 2 decimal places and
your CM ratio to 1 decimal place (i.e. .123 should be entered as
12.3%)).
2....
Edgewater Enterprises manufactures two products. Information follows: Product A Product B Sales price $ 19.50 $...
Edgewater Enterprises manufactures two products. Information
follows:
Product A
Product B
Sales price
$
19.50
$
22.75
Variable cost per unit
$
6.95
$
7.65
Product mix
40.00%
60.00%
Suppose that each product’s sales price increases by 10.00 percent.
Sales mix remains the same and total fixed costs are
$310,000.00.
Calculate the new break-even point for Edgewater. (Round
your intermediate calculations to 2 decimal places and final answer
to the nearest whole number.)
Assume a company produces and sells only two products—14,000 units of Product A and 6,000 units...
Assume a company produces and sells only two products—14,000
units of Product A and 6,000 units of Product B. The selling prices
are $65 per unit for Product A and $96 per unit for Product B.
Product A’s direct materials and direct labor costs per unit are
$30 and $12, respectively. Product B’s direct materials and direct
labor costs per unit are $34 and $15, respectively. The company
uses a plantwide overhead rate based on direct labor dollars. It is...
Assume a company produces and sells only two products—14,000 units of Product A and 6,000 units...
Assume a company produces and sells only two products—14,000
units of Product A and 6,000 units of Product B. The selling prices
are $65 per unit for Product A and $96 per unit for Product B.
Product A’s direct materials and direct labor costs per unit are
$30 and $12, respectively. Product B’s direct materials and direct
labor costs per unit are $34 and $15, respectively. The company
uses a plantwide overhead rate based on direct labor dollars. It is...
Required information Hickory Company manufactures two products—15,000 units of Product Y and 7,000 units of Product...
Required information
Hickory Company manufactures two products—15,000 units of
Product Y and 7,000 units of Product Z. The company uses a
plantwide overhead rate based on direct labour-hours. It is
considering implementing an activity-based costing (ABC) system
that allocates all of its manufacturing overhead to four cost
pools. The following additional information is available for the
company as a whole and for Products Y and Z:
Activity Measure
Estimated Overhead Cost
Expected Activity
Machining
Machine-hours
$
227,700
11,000
MHs
Machine...
Data on the two products are as follows : Alpha BETA Sales in volume in units...
Data on the two products are as follows :
Alpha
BETA
Sales in volume in units
520
420
units sale price
$300
$400
units variable cost
200
240
units contribution margin
$100
$160
Total fixed costs for the manufacture of both products are
$100,000.
Assuming that sales mix in terms of unit remains constant, what is
the breakeven point in total revenue dollars?
The Red Company makes two products. Cost data for these two products is as follows: Product...
The Red Company makes two products. Cost data for these two
products is as follows:
Product A
Product B
Selling price
$10
$20
Variable costs
7
12
Total annual fixed costs are $840,000. The firm's experience has
been that about 20 percent of unit sales come from product A, 80
percent from B.
The Red Company is taxed at 30%
Required:
a.
Determine the number of units to be sold at the break-even
point.
b.
Determine the number of units...
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