Parker Pottery produces a line of vases and a line of ceramic figurines. Each line uses the same equipment and labor; hence, there are no traceable fixed costs. Common fixed cost equals $28,800. Parker's accountant has begun to assess the profitability of the two lines and has gathered the following data for last year:   Vases   Figurines Price $40   $70 Variable cost 30   42 Contribution margin $10   $28 Number of units 1,000   500 Required: If required, round your final answers to nearest whole value. 1.  Compute the number of vases and the number of figurines that must be sold for the company to break even. Break-even vases units Break-even figurines units 2.  Parker Pottery is considering upgrading its factory to improve the quality of its products. The upgrade will add $5,280 per year to total fixed cost. If the upgrade is successful, the projected sales of vases will be 2,000, and figurine sales will increase to 1,000 units. What is the new break-even point in units for each of the products? Break-even vases units Break-even figurines units

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…

Windu Enterprises uses a manufacturing process that is very labor intensive to manufacture its multicolored laser vegetable slicers. Windu is considering a change to a more automated manufacturing process. The cost structure information for Windu's options are listed below. Windu sells its only product for $25 per unit. Costs Fixed Manufacturing Costs Variable Manufacturing Cost per unit Current Method $180,000 $15 Automated Method $240,000 $13 Required. 1. Compute the breakeven points for both production methods 2. Compute the point of indifference for these two production methods (i.e. at what number of units of production will income be equal for both methods?) 3. Calculate the Operating Leverage Factor for both methods at the point of indifference + 4. If Windu's management intends to produce and sell 35,000 units, which production method should they use? 5. By how much per unit (nearest $.01) would the current method's variable cost need to decrease in order for management to be…

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 Conquistador Hurricane $5,000 $3,200 Sales unit volume (3,150) $1,850 (700) $1,150 (540) $610 2,700 (2,140) $1,060 $ (420) In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane $640 (260) % $380 1,900 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 Line Item Description Conquistador Hurricane $ $ $ % b. What advice would you give to the management of Galaxy…