43. Assuming the sales mix in Year 5 will be the same as in Year 4, what is the breakeven sales volume for Year 5 (rounded to the nearest 10 units)? Yabco Inc. produces three design types of a product, A, B and C. The budgeted gross margin per unit for Year 5 is as follows: A C B P400 P250 Price P150 Direct materials 100 80 40 Direct labor 50 50 50 Variable overhead 60 40 10 Fixed overhead 20 20 20 230 190 120 Gross Margin per Unit P170 P 60 P 30 The fixed overhead allocation rate is based on the Year 4 sales of 5,000 units of A, 10,000 units of B and 20,000 units of C. The budgeted total administration costs for Year 5 amount to P500,000, all of which are fixed costs. a) 8,540 units Ob) 11,250 units Oc) 8,840 units Od) 15,270 units
43. Assuming the sales mix in Year 5 will be the same as in Year 4, what is the breakeven sales volume for Year 5 (rounded to the nearest 10 units)? Yabco Inc. produces three design types of a product, A, B and C. The budgeted gross margin per unit for Year 5 is as follows: A C B P400 P250 Price P150 Direct materials 100 80 40 Direct labor 50 50 50 Variable overhead 60 40 10 Fixed overhead 20 20 20 230 190 120 Gross Margin per Unit P170 P 60 P 30 The fixed overhead allocation rate is based on the Year 4 sales of 5,000 units of A, 10,000 units of B and 20,000 units of C. The budgeted total administration costs for Year 5 amount to P500,000, all of which are fixed costs. a) 8,540 units Ob) 11,250 units Oc) 8,840 units Od) 15,270 units
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 20E: Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc.,...
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:43. Assuming the sales mix in Year 5 will be the same as in Year 4, what is
the breakeven sales volume for Year 5 (rounded to the nearest 10 units)?
Yabco Inc. produces three design types of a product, A, B and C. The budgeted gross
margin per unit for Year 5 is as follows:
A
C
B
P400 P250
Price
P150
Direct materials
100 80 40
Direct labor
50
Variable overhead
60
10
Fixed overhead
20
230
120
Gross Margin per Unit P170 P 60
P 30
The fixed overhead allocation rate is based on the Year 4 sales of 5,000 units of A, 10,000 units
of B and 20,000 units of C. The budgeted total administration costs for Year 5 amount to
P500,000, all of which are fixed costs.
a) 8,540 units
Ob) 11,250 units
c) 8,840 units
d) 15,270 units
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,