Question
In: Accounting
1. A company manufactures and sells two types of gloves – Warm and Cozy – for...
1. A company manufactures and sells two types of gloves – Warm and Cozy – for runners. Current financial data is provided below: WARM COZY Selling Price per pair $8.00 $12.00 VC per pair $2.00 $ 6.00 Number of pairs sold per month 600 200 Fixed costs = $2,250 per month a) Compute the break even in dollars for the company in Total?
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Expert Solution
| WARM | COZY | ||||
| Selling Price | 8.00 | 12.00 | |||
| Less: Variable Cost | 2.00 | 6.00 | |||
| Contribution Margin | 6.00 | 6.00 | Total | ||
| Number of Unit | 600.00 | 200.00 | 800.00 | ||
| Sales | 4,800.00 | 2,400.00 | 7,200.00 | ||
| Sales Mix | 66.67% | 33.33% | 100.00% | ||
| 5.33 | 4.00 | 9.33 | |||
| Weighted Average Contribution Margin | 4.00 | 2.00 | 6.00 | ||
| Total | |||||
| Fixed Costs | 2,250.0 | ||||
| Weighted Average Contribution Margin | 6.00 | ||||
| Break Even in Units | 375.00 | ||||
| WARM | COZY | Total | |||
| Break Even Units Splits (375*66.67%/33.33%) | 250.00 | 125.00 | 375.00 | ||
| Selling Price | 8.00 | 12.00 | |||
| Break Even in Dollars | 2,000.00 | 1,500.00 | 3,500.00 | ||
ekkarill92 answered 1 year agoRelated Solutions
A company manufactures and sells two types of gloves – Warm and Cozy – for runners....
A company manufactures and sells two types of gloves – Warm and
Cozy – for runners. Current financial data is provided below: WARM
COZY Selling Price per pair $8.00 $12.00 VC per pair $2.00 $ 6.00
Number of pairs sold per month 600 200 Fixed costs = $2,250 per
month
a) Comparing the original information provided and your
break-even calculation, what is the Margin of Safety in dollars
between them?
b) Comparing the original information provided and your
break-even calculation,...
Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of...
Warm Hands, a small company based in Prince Edward Island,
manufactures and sells two types of lightweight gloves for
runners—Warm and Cozy. Current revenue, cost, and unit sales data
for the two products appear below:
Warm
Cozy
Selling price per pair
$
6.00
$
9.00
Variable expenses per pair
$
1.50
$
4.50
Number of pairs sold monthly
3,000
units
1,000
units
Fixed expenses are $2,880 per month.
Required:
1. Assuming the sales mix above, do the
following:
a. Prepare...
Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of...
Warm Hands, a small company based in Prince Edward Island,
manufactures and sells two types of lightweight gloves for
runners—Warm and Cozy. Current revenue, cost, and unit sales data
for the two products appear below:
Warm
Cozy
Selling price per pair
$
10.00
$
15.00
Variable expenses per pair
$
2.50
$
7.50
Number of pairs sold monthly
2,100
units
700
units
Fixed expenses are $2,520 per month.
Required:
1. Assuming the sales mix above, do the
following:
a. Prepare...
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6.
Dragon Sports Inc. manufactures and sells two products, baseball
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1.
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manufactures two different types of cookies; Chocolate Chip and
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A & B manufactures and sells two types of products to a number of customers. The...
A & B manufactures and sells two types of products to a
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Product Y
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Material P
8
10
31,250
Material Q
10
5
20,000
Direct Labour
4
5
17,500
Maximum sales(demand) for X is 1000 units and Y 3000
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Gator Corporation manufactures several types of accessories. For the year, the gloves and mittens line had...
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