Calculate the break-even point in units for a company with multiple products. E6.35 (LO 2, 5) Veejay Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data: Pairs of Pairs of Range- Shoes Gloves Finder Unit sales price $100 $30 $270 Unit variable 60 10 200 costs Unit $40 $20 $ 70 contribution margin Sales mix 40% 50% 10% Fixed costs are $660,000. Instructions a. Calculate the break-even point in units for the company. b. Determine the number of units to be sold at the break-even point for each product line. c. Verify that the mix of sales units determined in part (b) will generate a zero operating income.
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- Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data. Pairs ofShoes Pairs ofGloves Range-Finder Unit sales price $100 $30 $260 Unit variable costs 60 10 200 Unit contribution margin $40 $20 $60 Sales mix 35 % 55 % 10 % Fixed costs are $620,000. (a) Calculate weighted-average unit contribution margin. (Round answer to 2 decimal places e.g. 10.25.) Weighted-average unit contribution margin $Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data. Pairs ofShoes Pairs ofGloves Range-Finder Unit sales price $104 $34 $244 Unit variable costs 61 10 202 Unit contribution margin $43 $24 $42 Sales mix 40 % 43 % 17 % Fixed costs are $634,278. Calculate weighted-average unit contribution margin. (Round answer to 2 decimal places e.g. 10.25.) Weighted-average unit contribution margin $ Compute the break-even point in units for the company. Break-even point units Determine the number of units to be sold at the break-even point for each product line. Shoes Gloves Range FindersStaley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $ 420 100.00 Variable costs 217 51.67 Unit contribution margin $ 203 48.33 Assume that Staley Co. is currently selling 550 computer monitors per month and monthly fixed costs are $79,300.Staley Co.'s margin of safety ratio (MOS%) if 550 units are sold would be (round intermediate calculation up to nearest whole number of units): Multiple Choice 41.81%. 26.11%. 28.91%. 27.91%. 82.91%.
- Head Pops Inc. manufactures two models of solar-powered, noise-canceling headphones: Sun Sound and Ear Bling models. The company is operating at less than full capacity. Market research indicates that 20,000 additional Sun Sound and 38,000 additional Ear Bling headphones could be sold. The income from operations by unit of product is as follows: 1 Sun Sound Headphones Ear Bling Headphones 2 Sales price $135.00 $150.00 3 Variable cost of goods sold 76.40 65.00 4 Manufacturing margin $58.60 $85.00 5 Variable selling and administrative expenses 25.00 24.00 6 Contribution margin $33.60 $61.00 7 Fixed manufacturing costs 12.00 11.50 8 Income from operations $21.60 $49.50 Prepare an analysis indicating the increase or decrease in total profitability if 20,000 additional Sun Sound and 38,000 additional Ear Bling headphones are produced and sold, assuming that there is sufficient capacity for…Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $ 490 100.00 Variable costs 317 64.69 Unit contribution margin $ 173 35.31 Assume that Staley Co. is currently selling 610 computer monitors per month and monthly fixed costs are $80,100.What is Staley Co.'s degree of operating leverage (DOL) at this sales volume (i.e., at 610 units)? (Round your answer to three decimal places.) Multiple Choice 4.422. 3.709. 4.934. 4.304. 4.150.Tiktok Company distributes a lightweight lawn chair that sell for P150 per unit. Variable costs are P60 per unit, and fixed costs total P1,800,000 annually. Required: 1. What is the product's CM Ratio?2. Use the CM ratio to determine the break-even point in sales pesos.
- Leather and Boots Inc. makes and sells two types of shoes, Plain and Fancy. Data concerning these products are as follows: Plain Fancy Unit selling price $20.00 $35.00 Variable cost per unit 12.00 24.50 Sixty percent of the unit sales are Plain, and annual fixed expenses are $45,000. REQUIREMENTS 1) Assuming that the sales mix remains constant, the total number of units that Leather and Boots must sell to break even is? 2) Assuming that the sales mix remains constant, the total number of units that Fancy must sell to break even is?Verify that the mix of units to be sold at the break-even point for each product line will generate a zero net income by computing the total contribution margin for each product line. $ $ $ $ GIVEN: Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost…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.
- Carla Vista Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data. Sales mix is determined based upon total units sold. Pairs ofShoes Pairs ofGloves Range-Finder Unit selling price $105 $33 $244 Unit variable costs 58 13 203 Unit contribution margin $47 $20 $41 Sales mix 36 % 41 % 23 % Fixed costs are $735,915. (a1) Calculate weighted-average unit contribution margin. (Round answer to 2 decimal places e.g. 10.25.) Weighted-average unit contribution margin $enter the weighted-average unit contribution margin in dollars rounded to 2 decimal placesWham Company sells electronic squirrel repellants. The following data are given: Unit selling price $55.00 Variable costs ratio (Variable costs as a % of selling price) 39.00% Total fixed costs $45,000 Number of units sold 2,500 What is the magnitude of operating leverage? Round your answer to two digits. A. 2.16 B. 1.64 C. 0.46 D. 1.38 E. 3.54Sherpa Manufacturing has the following income statement for 6,000 units:Sales $600,000Variable costs 360,000Contribution margin 240,000Fixed costs 80,000Net income $160,000 Using the information above: a. At what sales volume (in sales dollars) does Sherpa break even?b. At what sales volume (in units) does Sherpa break even?c. Given the income statement above, compute the margin of safety.d. What level of sales volume must be attained to reach net income of $200,000?e. What level of sales volume must be attained to reach net income of $180,000, assuming Sherpa had to pay income taxes at a rate of 40%?You may attach your workbook(s) to this answer and/or use the textbox below