5-32 #2 Of the total fixed expenses of $400,000, $20,000 could be avoided if the Velcro product is dropped, $80,000 if the Metal product is dropped, and $60,000 if the Nylon product is dropped. The remaining fixed expenses of $240,000 consist of common fixed expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely.What is the break-even point in unit sales for each product?If the company sells exactly the break-even quantity of each product, what will be the overall profit of the company? Explain this result. A. Case 5-23 lInformation: ACC313 I1 VitalSource Bookshelf: Manageria Xb #3 5-23 If this year's sales increaC Sign In or Sign Up | Chegg.com xA online.vitalsource.com/#/books/9781259995484/cfi/6/30!/4/2/72/2/6/2@0:92.6LibraryCASE 5-32 Break-Even Analysis for Individual Products in a Multiproduct Company LO5-5, LO5-9Cheryl Montoya picked up the phone and called her boss, Wes Chan, the vice president of marketing at Piedmont Fasteners Corporation: "Wes, I'm not surehow to go about answering the questions that came up at the meeting with the president yesterday.""What's the problem?""The president wanted to know the break-even point for each of the company's products, but I am having trouble figuring them out.""I'm sure you can handle it, Cheryl. And, by the way, I need your analysis on my desk tomorrow morning at 8:00 sharp in time for the follow-up meeting atChapter 5 Cost-Volu...Go to Chapter 5 Cost-Volume-Profit RelationshipsSearch9:00."GlossaryPiedmont Fasteners Corporation makes three different clothing fasteners in its manufacturing facility in North Carolina. Data concerning these products appearbelow:224224QuestionsVelcroMetalNylonAnnual sales volume100,000200,000400,000224Applying ExcelUnit selling price.$1.65$1.50$0.85The Foundational 15Variable expense per unit$1.25$0.70$0.25226Total fixed expenses are $400,000 per year.227Exercisespage 240232ProblemsAll three products are sold in highly competitive markets, so the company is unable to raise prices without losing an unacceptable numbers of customers.The company has an extremely effective lean production system, so there are no beginning or ending work in process or finished goods inventories.239CasesRequired:1. What is the company's over-all break-even point in dollar sales?2. Of the total fixed expenses of $400,000, S20,000 could be avoided if the Velcro product is dropped, $80,000 if the Metal product is dropped,and $60,000 if the Nylon product is dropped. The remaining fixed expenses of $240,000 consist of common fixed expenses such asadministrative salaries and rent on the factory building that could be avoided only by going out of business entirely.a. What is the break-even point in unit sales for each product?b. If the company sells exactly the break-even quantity of each product, what will be the overall profit of the company? Explain this result.Appendix 5A: Analyzing Mixed241Costs 241249Glossary (Appendix 5A)Appendix 5A: Exercises andWe've updated our read aloud feature!Give it a try here.249Problems239Aa )7:24 PMP Type here to searcha10/10/2020!!

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5-32 #2 Of the total fixed expenses of $400,000, $20,000 could be avoided if the Velcro product is dropped, $80,000 if the Metal product is dropped, and $60,000 if the Nylon product is dropped. The remaining fixed expenses of $240,000 consist of common fixed expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely.What is the break-even point in unit sales for each product?If the company sells exactly the break-even quantity of each product, what will be the overall profit of the company? Explain this result. A. Case 5-23 lInformation: ACC313 I1 VitalSource Bookshelf: Manageria Xb #3 5-23 If this year's sales increaC Sign In or Sign Up | Chegg.com xA online.vitalsource.com/#/books/9781259995484/cfi/6/30!/4/2/72/2/6/2@0:92.6LibraryCASE 5-32 Break-Even Analysis for Individual Products in a Multiproduct Company LO5-5, LO5-9Cheryl Montoya picked up the phone and called her boss, Wes Chan, the vice president of marketing at Piedmont Fasteners Corporation: &#34;Wes, I'm not surehow to go about answering the questions that came up at the meeting with the president yesterday.&#34;&#34;What's the problem?&#34;&#34;The president wanted to know the break-even point for each of the company's products, but I am having trouble figuring them out.&#34;&#34;I'm sure you can handle it, Cheryl. And, by the way, I need your analysis on my desk tomorrow morning at 8:00 sharp in time for the follow-up meeting atChapter 5 Cost-Volu...Go to Chapter 5 Cost-Volume-Profit RelationshipsSearch9:00.&#34;GlossaryPiedmont Fasteners Corporation makes three different clothing fasteners in its manufacturing facility in North Carolina. Data concerning these products appearbelow:224224QuestionsVelcroMetalNylonAnnual sales volume100,000200,000400,000224Applying ExcelUnit selling price.$1.65$1.50$0.85The Foundational 15Variable expense per unit$1.25$0.70$0.25226Total fixed expenses are $400,000 per year.227Exercisespage 240232ProblemsAll three products are sold in highly competitive markets, so the company is unable to raise prices without losing an unacceptable numbers of customers.The company has an extremely effective lean production system, so there are no beginning or ending work in process or finished goods inventories.239CasesRequired:1. What is the company's over-all break-even point in dollar sales?2. Of the total fixed expenses of $400,000, S20,000 could be avoided if the Velcro product is dropped, $80,000 if the Metal product is dropped,and $60,000 if the Nylon product is dropped. The remaining fixed expenses of $240,000 consist of common fixed expenses such asadministrative salaries and rent on the factory building that could be avoided only by going out of business entirely.a. What is the break-even point in unit sales for each product?b. If the company sells exactly the break-even quantity of each product, what will be the overall profit of the company? Explain this result.Appendix 5A: Analyzing Mixed241Costs 241249Glossary (Appendix 5A)Appendix 5A: Exercises andWe've updated our read aloud feature!Give it a try here.249Problems239Aa )7:24 PMP Type here to searcha10/10/2020!!

Accepted Answer

Contribution Margin ratio:  Contribution Margin/ sales
Break even point in sales : Fixed expenses /…