Question
In: Accounting
International Printer Machines (IPM) builds three computer printer models: Alpha, Beta, and Gamma. Information for these...
International Printer Machines (IPM) builds three computer printer models: Alpha, Beta, and Gamma. Information for these three products is as follows:
Alpha Beta Gamma Total
Selling price per unit $250 $400 $ 1 500
Variable cost per unit $80 $200 $800
Expected unit sales(annual) 12,000 6,000 2,000 20,000
Sales mix 50 % 40% 10% 100%
Total annual fixed costs are $5,000,000. Assume the sales mix remains the same at all levels of sales.
Required:
a) Calculate the weighted average unit contribution margin, assuming a constant sales mix.
b) How many units of each printer must be sold to break even?
c) i) Explain what is margin of safety. ii) Calculate in sales units the margin of safety for IPM, assuming projected sales are 25,000 units?
Solutions
Expert Solution
Margin of safety is actual or projected sales over and above the
break even sales
ekkarill92 answered 1 year agoRelated Solutions
International Printer Machines (IPM) builds three computer printer models: Alpha, Beta, and Gamma. Information for these...
International Printer Machines (IPM) builds three computer
printer models: Alpha, Beta, and Gamma. Information for these three
products is as follows: Alpha Beta Gamma Total Selling price per
unit $250 $400 $1 500 Variable cost per unit $80 $200 $800 Expected
unit sales (annual) 12,000 6,000 2,000 20,000 Sales mix 50 percent
40 percent 10 percent 100 percent Total annual fixed costs are
$5,000,000. Assume the sales mix remains the same at all levels of
sales. Required: a) Calculate the...
Consider the information in the table regarding prices of three goods (alpha, beta, gamma) and the...
Consider the information in the table regarding prices of three
goods (alpha, beta, gamma) and the quantities purchased by two
individuals (Warren and Frank).
Good
Price year 1
Price year 2
Warren
Frank
Alpha
$2.10
$2.25
5
10
Beta
$5.10
$5.80
5
5
Gamma
$3.05
$2.90
10
5
Based on this information, Warren feels like the inflation rate
was __ % and Frank feels like the inflation rate was __ %.
Wilson Inc. has three divisions, Alpha, Beta and Gamma. Following is the income statement for the...
Wilson Inc. has three divisions, Alpha, Beta and Gamma.
Following is the income statement for the previous
year:
Alpha
Beta
Gamma
Total
Sales
$
1,000,000
$
575,000
$
425,000
$
2,000,000
Variable Costs
400,000
345,000
300,000
1,045,000
Contribution Margin
600,000
230,000
125,000
955,000
Fixed Costs
375,000
215,625
159,375
750,000
Profit Margin
225,000
14,375
(34,375
)
205,000
Of the fixed costs, $300,000 is for corporate costs and is
allocated equally to the three divisions.
How much does Gamma Division have in...
MSA Computer Corporation manufactures two models of minicomputers, the Alpha 4 and the Beta 5. The...
MSA Computer Corporation manufactures two models of
minicomputers, the Alpha 4 and the Beta 5. The firm employs six
technicians, working 160 hours each per month, on its assembly
line. Management insists that full employment (i.e., all 160 hours
of time) be maintained for each worker during next month’s
operations. It requires 20 labor hours to assemble each Alpha 4
computer and 25 labor hours to assemble each Beta 5 model. MSA
wants to see at least 10 Alpha 4s...
1. Of the three main radioactive emissions: alpha, beta, and gamma, which would be the least/most...
1. Of the three main radioactive emissions: alpha, beta, and
gamma, which would be the least/most harmful to biology and why?
Which would be the easiest/hardest to block and how?
2. In some medical procedures, radioactive isotopes are used
that have very short half-lives. Why is this desirable and how
would these isotopes be obtained since none would be found in
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3. Different types of imaging - CT, PET, MRI - use different
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TEXAS COMPANY …… produces two models, Alpha and Gamma, using “Bob”, a new manufacturing process. Information...
TEXAS COMPANY
…… produces two models, Alpha and Gamma, using “Bob”, a new
manufacturing process. Information regarding Alpha and Gamma is
summarized in the following table:
ALPHA
GAMMA
Price per unit
$80
$60
Variable cost per unit
$50
$30
Amount of BOB processing time required per unit
6 hours
2 hours
BOB can only be used for 120 hours per week. The Company has
fixed costs of $720 per week.
Required:
1. Given the data above, assuming that there is...
A company has to choose between two new machines, the Alpha and the Beta. Both machines...
A company has to choose between two new machines, the Alpha and
the Beta. Both machines would cost $30 000 and have an expected
lifetime of 4 years. Estimates of the
annual cash inflows which each machine would generate are given
below
Machine
Year
0
1
2
3
4
Alpha
Cash flow
-$30,000
$14,000
$15,000
$15,000
$14,000
Beta
Cash flow
-$30,000
$8,000
$13,000
$15,000
$21,500
The company staff decides that 12% is an appropriate discount
rate.
Find the net present...
Alpha, Beta, and Gamma established a partnership. The partnership rules state that income will be distributed...
Alpha, Beta, and Gamma established a partnership. The
partnership rules state that income will be distributed by:1) Alpha
receives $12,000 salary (2) each partner receives 7% interest on
average capital balances (3) remaining income is distributed 1:2:1
(Alpha, Beta, Gamma). The amount draw exceeds income for any
partner must be contributed back to the partnership
The year begins with capital as follows: Alpha = $50,000, Beta =
$75,000, Gamma = $50,000. During the year, Alpha had draw of
$10,000 taken...
(a) Explain the features of the spectra of alpha, beta and gamma radiation. (b) Why does...
(a) Explain the features of the spectra of alpha, beta and gamma
radiation.
(b) Why does alpha/beta spectroscopy have to be conducted in an
environment different from that for gamma spectroscopy?
Alpha, Beta, and Gamma established a partnership. The partnership rules state that income will be distributed...
Alpha, Beta, and Gamma established a partnership. The
partnership rules state that income will be distributed by:1) Alpha
receives $12,000 salary (2) each partner receives 7% interest on
average capital balances (3) remaining income is distributed 1:2:1
(Alpha, Beta, Gamma). The amount draw exceeds income for any
partner must be contributed back to the partnership
The year begins with capital as follows: Alpha = $50,000, Beta =
$75,000, Gamma = $50,000. During the year, Alpha had draw of
$10,000 taken...
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