Question
In: Accounting
Swanson Company has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for...
Swanson Company has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Swanson incurs $6,660,000 in fixed costs. The contribution margin per unit for Sporting Goods is 30, while for Sports Gear it is 50. What is the break-even in units
Solutions
Expert Solution
Weighted average contribution margin = Sales mix percentage * Contribution margin per unit
| Sales mix percentage | Contribution margin per unit | weighted average contribution margin | |
| Sporting goods | 65% | $ 30 | $ 20 |
| Sports gear | 35% | $ 50 | $ 18 |
| Weighted average contribution margin | $ 37 |
Total Break even sales in units = Fixed expenses / Contribution margin
Total Break even sales in units = $6,660,000 / 37 = 180,000 units
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ekkarill92 answered 2 years agoRelated Solutions
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Sales—Winter Sports Division
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Cost of Goods Sold—Winter Sports Division
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posted:
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Glades Sporting Goods Co. operates two divisions—the Winter Sports Division and the Summer Sports Division. The...
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income and expense accounts were provided from the trial balance as
of December 31, 20Y8, the end of the fiscal year, after all
adjustments, including those for inventories, were recorded and
posted:
Sales—Winter Sports Division
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Sales—Summer Sports Division
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Cost of Goods Sold—Winter Sports Division
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Cost of Goods Sold—Summer Sports Division
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Sales expense—Winter Sports Division
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Sales expense—Summer Sports Division...
Glades Sporting Goods Co. operates two divisions—the Winter Sports Division and the Summer Sports Division. The...
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Division and the Summer Sports Division. The following income and
expense accounts were provided from the trial balance as of
December 31, 20Y8, the end of the fiscal year, after all
adjustments, including those for inventories, were recorded and
posted:
Sales—Winter Sports Division
$10,525,000
Sales—Summer Sports Division
13,610,000
Cost of Goods Sold—Winter Sports Division
6,280,000
Cost of Goods Sold—Summer Sports Division
7,868,000
Sales expense—Winter Sports Division
1,650,000
Sales expense—Summer Sports Division...
Glades Sporting Goods Co. operates two divisions—the Winter Sports Division and the Summer Sports Division. The...
Glades Sporting Goods Co. operates two divisions—the Winter
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adjustments, including those for inventories, were recorded and
posted:
Sales—Winter Sports Division
$12,600,000
Sales—Summer Sports Division
16,300,000
Cost of Goods Sold—Winter Sports Division
7,560,000
Cost of Goods Sold—Summer Sports Division
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Sales Expense—Winter Sports Division
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Profit Center Responsibility Reporting XSport Sporting Goods Co. operates two divisions—the Winter Sports Division and the...
Profit Center Responsibility Reporting
XSport Sporting Goods Co. operates two divisions—the Winter
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adjustments, including those for inventories, were recorded and
posted:
Sales—Winter Sports Division
$29,452,500
Sales—Summer Sports Division
32,538,000
Cost of Goods Sold—Winter Sports Division
17,671,500
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18,793,500
Sales Expense—Winter Sports Division
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adjustments, including those for inventories, were recorded and
posted:
Sales—Winter Sports Division
$36,907,500
Sales—Summer Sports Division
40,774,000
Cost of Goods Sold—Winter Sports Division
22,144,500
Cost of Goods Sold—Summer Sports Division
23,550,500
Sales Expense—Winter Sports Division
6,327,000...
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Profit Center Responsibility Reporting
Glades Sporting Goods Co. operates two divisions—the Winter
Sports Division and the Summer Sports Division. The following
income and expense accounts were provided from the trial balance as
of December 31, 20Y8, the end of the fiscal year, after all
adjustments, including those for inventories, were recorded and
posted:
Sales—Winter Sports Division
$36,750,000
Sales—Summer Sports Division
40,600,000
Cost of Goods Sold—Winter Sports Division
22,050,000
Cost of Goods Sold—Summer Sports Division
23,450,000
Sales Expense—Winter Sports Division
6,300,000...
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Glades Sporting Goods Co. operates two divisions—the Winter
Sports Division and the Summer Sports Division. The following
income and expense accounts were provided from the trial balance as
of December 31, 20Y8, the end of the fiscal year, after all
adjustments, including those for inventories, were recorded and
posted:
Sales—Winter Sports Division
$26,775,000
Sales—Summer Sports Division
29,580,000
Cost of Goods Sold—Winter Sports Division
16,065,000
Cost of Goods Sold—Summer Sports Division
17,085,000
Sales Expense—Winter Sports Division
4,590,000...
Profit Center Responsibility Reporting Glades Sporting Goods Co. operates two divisions—the Winter Sports Division and the...
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Glades Sporting Goods Co. operates two divisions—the Winter
Sports Division and the Summer Sports Division. The following
income and expense accounts were provided from the trial balance as
of December 31, 20Y8, the end of the fiscal year, after all
adjustments, including those for inventories, were recorded and
posted:
Sales—Winter Sports Division
$36,907,500
Sales—Summer Sports Division
40,774,000
Cost of Goods Sold—Winter Sports Division
22,144,500
Cost of Goods Sold—Summer Sports Division
23,550,500
Sales Expense—Winter Sports Division
6,327,000...
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