Required:1. Compute the number of regular models and deluxe models that must be sold to break even. Round your answers to the nearest whole unit.Regular models fill in the blank 1 unitsDeluxe models fill in the blank 2 units2. Using information only from the total column of the income statement, compute the sales revenue that must be generated for the company to break even. Round thecontribution margin ratio to four decimal places. Use the rounded value in the subsequent computation. (Express as a decimal-based amount rather than a wholepercentage.) Round the amount of revenue to the nearest dollar.Contribution margin ratiofill in the blank 3Sfill in the blank 4Revenue CVP Analysis of Multiple ProductsAlo Company produces commercial printers. One is the regular model, a basic model that is designed to copy and print in black and white. Another model, the deluxemodel, is a color printer-scanner-copier. For the coming year, Alo expects to sell 90,000 regular models and 18,000 deluxe models. A segmented income statement for thetwo products is as follows:SalesLess: Variable costsContribution marginLess: Direct fixed costsSegment marginLess: Common fixed costsOperating incomeRegular Model$14,400,0008,640,000$5,760,0001,200,000$4,560,000Deluxe Model$12,240,0007,344,000$4,896,000960,000$3,936,000Total$26,640,00015,984,000$10,656,0002,160,000$8,496,0001,510,400$6,985,600

To know the break even point for a company with mutliple products , the contribution margin per unit…

lumn of the income statement, compute the sales revenue that must be generated for the com places. Use the rounded value in the subsequent computation. (Express as a decimal-based an e to the nearest dollar. k 3

lumn of the income statement, compute the sales revenue that must be generated for the com places. Use the rounded value in the subsequent computation. (Express as a decimal-based an e to the nearest dollar. k 3

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 58P: Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and...

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Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.
CVP Analysis of Multiple Products Alo Company produces commercial printers. One is the regular model, a basic model that is designed to copy and print in black and white. Another model, the deluxe model, is a color printer-scanner-copier. For the coming year, Alo expects to sell 90,000 regular models and 18,000 deluxe models. A segmented income statement for the two products is as follows: Sales Less: Variable costs Contribution margin Less: Direct fixed costs Segment margin Less: Common fixed costs Operating income Required: Regular Model $14,400,000 8,640,000 $5,760,000 1,200,000 $4,560,000 Show Transcribed Text units Deluxe Model units $12,240,000 7,344,000 $4,896,000 960,000 $3,936,000 Total $26,640,000 15,984,000 $10,656,000 2,160,000 $8,496,000 1,628,800 $6,867,200 V 1. Compute the number of regular models and deluxe models that must be sold to break even. Round your answers to the nearest whole unit. Regular models Deluxe models C 2. Using information only from the total column…
Sundial, Inc., produces two models of sunglasses-AU and NZ. the sunglasses have the following characteristics. Au NZ Selling price per unit $ 160 $ 160 Variable cost per unit $ 80 $ 60 Expected units sold per year 70,000 30,000 The total fixed costs per year for the company are $3,612,000. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix is the same at the break-even point, compute the break-even point. c. If the product sales mix were to change to four pairs of UA sunglasses for each pair of NZ sunglasses, what would be the new break-even volume for Sundial, Inc? Complete the question by entering your answers in the tabs below. Required A What is the…
The XYZ Company produces and sells two products: The Riffs and The Raffs. Below is revenue and cost information to facilitate the development of a basic segmented income statement. Product Riffs Raffs Sales Price per unit $8.00 6.00 Variable Cost per unit $3.20 3.00 Traceable Fixed Costs $62,000 $44,000 It is expected that the company will incur $21,000 of common fixed expenses and unit sales are expected to be 12,000 of Riffs and 18,000 of Raffs. Required: Construct a Contribution Format Income Statement segmented by product line and company total.
Shock Company manufactures computer monitors. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $ 460 100.00 Variable costs 237 51.52 Unit contribution margin $ 223 48.48 Assume that Shock Company is currently selling 590 computer monitors per month and monthly fixed costs are $79,800. What is Shock Company's degree of operating leverage (DOL) at this sales volume (i.e., at 590 units)? (Round your answer to three decimal places.) Multiple Choice 2.813. 2.100. 3.325. 2.695. 2.541.
Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: Sales price Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin. Sales unit volume Fixed expenses Operating income In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane 1,700 Sales ✓ Variable cost of goods sold Manufacturing margin Variable selling expenses a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Galaxy Sports Inc. Contribution Margin by Product Contribution margin Contribution margin ratio Conquistador $6,600 (4,160) $2,440 (1,120) $1,320 ✓ ✓ (620) $700 ✓ 2,400 Hurricane $4,000 (2,680) $1,320…
Pierson Pet Products produces two models of dog beds: Basic and Custom. Price, cost and expected sales volume data for the two models are as follows: Selling price per bed Variable cost per bed Expected sales (beds) The total fixed costs for the company are $401,940. Basic $ 23.00 $ 16.00 60,000 Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the expected product mix applies regardless of total sales, compute the break-even volume. c. If the product sales mix were to change to three Basic beds for each Custom bed, what would be the new break-even volume? Required A Complete this question by entering your answers in the tabs below. Custom $ 58.00 $ 37.00 40,000 Required B Profit Required C What is the anticipated level of profits for the expected sales volumes? Required A Required B
Pierson Pet Products produces two models of dog beds: Basic and Custom. Price, cost and expected sales volume data for the two models are as follows: Selling price per bed Variable cost per bed Expected sales (beds) The total fixed costs for the company are $401,940. Basic $ 23.00 $ 16.00 60,000 Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the expected product mix applies regardless of total sales, compute the break-even volume. c. If the product sales mix were to change to three Basic beds for each Custom bed, what would be the new break-even volume? Required A Required B Complete this question by entering your answers in the tabs below. Custom $ 58.00 $ 37.00 40,000 Basic beds Custom beds Required C If the product sales mix were to change to three Basic beds for each Custom bed, what would be the new break-even volume? Note: In your computations, round up the total units to break-even to the nearest whole number and round…
Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: Sales price Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Fixed expenses Operating income Sales unit volume In addition, the following sales unit volume information for the period is as follows: Conquistador $6,400 (4,030) $2,370 (1,026) $1,344 (630) $714 Conquistador $ The 2,600 Galaxy Sports Inc. Contribution Margin by Product would increase. Hurricane $4,000 (2,680) $1,320 a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. % Conquistador Hurricane Hurricane $ (600) $720 (290) $430 % 1,900 b. What advice would you give to the management of Galaxy Sports…
An investment banker is analyzing two companies that specialize in the production and sale of candied yams. Traditional Yams uses a labor-intensive approach, and Auto-Yams uses a mechanized system. CVP income statements for the two companies are shown below. Sales Variable costs Contribution margin Fixed costs Net income Traditional Yams $397,000 329,000 68,000 18,000 $50,000 Auto-Yams $397,000 162,000 235,000 185,000 $50,000 The investment banker is interested in acquiring one of these companies. However, she is concerned about the impact that each company's cost structure might have on its profitability.
An automated turning machine is the current constraint at Jordison Corporation. Three products use this constrained resource. Data concerning those products appear below: LN JQ $168.82 $313.84 $403.08 $139.72 $245.80 $287.56 RQ Selling price per unit Variable cost per unit Minutes on the constraint 1.50 4.20 7.60 Rank the products in order of their current profitability from most profitable to least profitable, In other words, rank the products in the order in which they should be emphasized. (Round your Intermedlate calculations to 2 declmoal places.) Multiple Cholce LN. JQ. RQ RQ. LN. JQ RQ. JQ. LN JQ. RQ LN Mc Graw Hill Type here to search 70°F Mostly cloudy 10 DELL
An investment banker is analyzing two companies that specialize in the production and sale of candied yams. Sheridan Yams uses a labor-intensive approach, and Sunland Yams uses a mechanized system. CVP income statements for the two companies are shown below. Sales Variable costs Contribution margin Fixed costs Net income Sheridan Yams $394,000 310,000 84,000 34,000 $50,000 Sunland Yams $394,000 156,000 238,000 188,000 $50,000 The investment banker is interested in acquiring one of these companies. However, she is concerned about the impact that each company's cost structure might have on its profitability.