In: Accounting
Question 7
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TD Manufacturing makes two products: office chairs and office desks. The following information about sales volume, sales price and costs are shown below. Total fixed costs for the company are $33,000.
Office chairs | Office desks | |
Sales volume | 280 | 420 |
Sales price | $65 | $50 |
Variable costs | $26 | $30 |
Calculate the following items
Do not enter dollar signs or commas in the input boxes.
Round the CM per unit to 2 decimal places and all other number to
the next highest whole number.
Weighted Average Contribution Margin per unit: $Answer
Break-even point in units: Answer
Number of office chairs to break even: Answer
Number of office desks to break even: Answer
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TD Manufacturing | ||||
Answer 1 | Chairs | Desks | Total | Note |
Price per unit | 65.00 | 50.00 | ||
Less: Variable cost per unit | 26.00 | 30.00 | ||
Contribution per unit | 39.00 | 20.00 | A | |
Sales units | 280.00 | 420.00 | 700.00 | B |
Total contribution per unit | 10,920.00 | 8,400.00 | 19,320.00 | C=A*B |
Weighted average contribution per unit | 27.60 | D=C/B | ||
Answer 2 | ||||
Fixed costs | 33,000.00 | E | ||
Total Break even units | 1,196.00 | F=E/D | ||
Answer 3 | ||||
Break even units- Product wise | 479.00 | 718.00 | G=F/B*B |