Company XYZ is an electric car manufacturer. The company produces and sells two models: Standard and Turbo. The Standard model has a selling price per unit and variable cost per unit of $ 8,000 and $ 3,000 respectively. The Turbo model has a selling price per unit and variable cost per unit of $ 12,000 and $ 5,000 respectively. The company currently has a sales mix of 4 units of Standard and 2 units of Turbo. Assuming total fixed costs of $ 510,000, how many units of Turbo should be sold to achieve breakeven?

Company XYZ is an electric car manufacturer. The company produces and sells two models: Standard and Turbo. The Standard model has a selling price per unit and variable cost per unit of $ 8,000 and $ 3,000 respectively. The Turbo model has a selling price per unit and variable cost per unit of $ 12,000 and $ 5,000 respectively. The company currently has a sales mix of 4 units of Standard and 2 units of Turbo. Assuming total fixed costs of $ 510,000, how many units of Turbo should be sold to achieve breakeven?

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.
Company XYZ is an electric car manufacturer . The company produces and sells two models : Standard and Turbo . The Standard model has a selling price per unit and variable cost per unit of $8,000 and $3,000 respectively . The Turbo model has a selling price per unit and variable cost per unit of $12,000 and $5,000 respectively . The company currently has a sales mix of 2 units of Standard and 4 units of Turbo . Assuming tota fixed costs of $475,000 , how many units of Standard should be sold to achieve breakeven ? a . 30 b. 25 c. None of the given answers d. 50 e. 60
(11) Home Run Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $712,000, and the sales mix is 60% bats and 40% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $95 $55 Gloves 115 75 a. Compute the break-even sales (units) for the overall product, E.fill in the blank 1 units b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point? Baseball bats fill in the blank 2 units Baseball gloves fill in the blank 3 units
5. Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $ 7 while the variable cost ratio is 20%. Assuming total fixed costs of $ 30,000, what is the margin of safety in ($) value?
Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows: Product Sales Priceper Unit Variable Costper Unit AA $50 $25 BB 45 10 CC 30 15 Their sales mix is reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $390,000 per year. A. What are total variable costs for Morris with their current product mix? Total variable costs $fill in the blank b93eff02dfbd00d_1 B. Calculate the number of units of each product that will need to be sold in order for Morris to break even. Number ofUnits per Product AA fill in the blank b93eff02dfbd00d_2 BB fill in the blank b93eff02dfbd00d_3 CC fill in the blank b93eff02dfbd00d_4 C. What is their break-even point in sales dollars? Break-even point in sales $fill in the blank b93eff02dfbd00d_5 Feedback A. Determine the composite sales price,…
#17 Konerko Company sells two types of computer chips. The sales mix is 30% (Q-Chip) and 70% (Q-Chip Plus). Q-Chip has variable costs per unit of P30 and a selling price of P50. Q-Chip Plus has variable costs per unit of P35 and a selling price of P65. The weighted-average unit contribution margin for Konerko is Group of answer choices P23. P25. P27. P50.
15.Spice Inc.'s unit selling price is $53, the unit variable costs are $39, fixed costs are $116,000, and current sales are 10,900 units. How much will operating income change if sales increase by 5,200 units? 16.Bryce Co. sales are $840,000, variable costs are $464,300, and operating income is $269,000. The contribution margin ratio is 17.Zeke Company sells 23,600 units at $17 per unit. Variable costs are $8 per unit, and fixed costs are $38,600. The contribution margin ratio and the unit contribution margin, respectively, are 18. If the contribution margin ratio for France Company is 34%, sales are $480,000, and fixed costs are $97,000, the operating income is
Dennis Company sells a product for P20, variable costs are P8 per unit, and fixed costs are P32,000.a. What is Dennis' break-even point in units?b. Find the selling price that Dennis must charge to earn an P8,000 profit selling 1,600 units.c. Dennis is considering new equipment that would increase fixed costs by P2,000 while reducing unit variable costs by P1.60 per unit. Find the sales level where Dennis is indifferent between the two cost structures.
NUBD Company is planning to produce two products, X and Y. NUBD is planning to sell 100,000 units of X at P4 per unit and 200,000 units of Y at P3 per unit. Variable costs are 70% of sales for X and 80% of sales for Y. In order to realize a total profit of P160,000, total fixed costs would be
Ralley Corporation sells a single product at a price of $550 per unit. Variable cost per unit is $270 and fixed costs total $840,000. If sales are expected to be $1,700,000, what is the company’s margin of safety ratio? 3.03% 30.3% 29.4% 2.94% 4.04%
20. if fixed costs are $262,000, the unit selling price is $32, and the unit variable costs are $21, the break-even sales (units) if fixed costs are reduced by $45,300 is a.15,760 units b.19,700 units c.29,550 units d.23,640 units 19. If fixed costs are $235,000, the unit selling price is $121, and the unit variable costs are $70, the break-even sales (units) is a.3,357 units b.4,608 units c.1,230 units d.1,942 units 18. If the contribution margin ratio for France Company is 34%, sales are $480,000, and fixed costs are $97,000, the operating income is 17.Zeke Company sells 23,600 units at $17 per unit. Variable costs are $8 per unit, and fixed costs are $38,600. The contribution margin ratio and the unit contribution margin, respectively, are a.53% and $9 per unit b.53% and $17 per unit c.2% and $17 per unit d.2% and $8 per unit
Wren Co. manufactures and sells two products with selling prices and variable costs as follows: A) selling price $18.00, variable costs $12.00, and B) selling price $22.00, variable costs $14.00. Wren's total annual fixed costs are $38,400. Wren sells four units of A for every unit of B. If operating income was $28,800 what was the number of units Wren sold?