Revenue mix, three products. The Mendez Company has three products, tote bags H, J, and K. The presidentplans to sell 200,000 units during the next period, consisting of 80,000 units of H, 100,000 units of J, and20,000 units of K. The products have unit contribution margins of $2, $3, and $6 respectively. The company'sfixed costs for the period are $406,000.REQUIRED1. Compute the budgeted operating income. Compute the breakeven point in units, assuming that the givenrevenue mix is maintained.2. Suppose 80,000 units of II, 80,000 units of J, and 40,000 units of K are sold. Compute the budgetedoperating income. Compute the new breakeven point in units if these relationships persist in the nextperiod.

Break even point :— It is the point of production where total cost is equal to total revenue. At…

Answered: Revenue mix, three products. The Mendez…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2CE

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Sales mix, three products. The Ronowski Company has three product lines of belts—A, B, and C— with contribution margins of $3, $2, and $1, respectively. The president foresees sales of 200,000 units in the coming period, consisting of 20,000 units of A, 100,000 units of B, and 80,000 units of C. The company’s fixed costs for the period are $255,000. What is the company’s breakeven point in units, assuming that the given sales mix is maintained? If the sales mix is maintained, what is the total contribution margin when 200,000 units are sold? What is the operating income? What would operating income be if 20,000 units of A, 80,000 units of B, and 100,000 units of C were sold? What is the new breakeven point in units if these relationships persist in the next period?
2. vandolf, inc. produces and sells two products: a ceiling fan and a table fan. vandolf plans to sell 30,000 ceiling fans and 70,000 table fan in the coming year. product price and cost information includes: ceiling fan table fan price p 60 p 15 unit variable cost 12 7 direct fixed cost p 23,600 p 45,000 common fixed selling and administrative expenses total p 85,000. required: a. what is the sales mix estimated for next year (calculated to the lowest whole number for each product)? b. using the sales mix from the first requirement, form a package of ceiling fans and table fans. how many ceiling fans and table fans are sold at break-even? c. prepare a contribution-margin based income statement for vandolf,inc., based on the unit sales calculated in requirement in b. d. what if vandolf, inc., wanted to earn operating income equal to p 14,400? calculate the number of ceiling fans and table fans that must be sold to earn this level of operating income. ( hint: remember to form a package…
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4. The Janowski Company has three product lines of mugs-A, B, and C with contribution margins of $5, S4, and $3, respectively. The president foresees sales of 168,000 units in the coming period, consisting of 24,000 units of A, 96,000 units of B, and 48,000 units of C. The company's fixed costs for the period are $405,000. a. What is the company's breakeven point in units, assuming that the given sales mix is maintained? b. If the sales mix is maintained, what is the total contribution margin when 168,000 units are sold? What is the operating income? c. What would operating income be if the company sold 24,000 units of A, 48,000 units of B, and 96,000 units of C? What is the new breakeven point in units if these relationships persist in the next period?
III. NadasellsorangejuiceforOMR1.00pergallon.ThevariablecostperunitisOMR0.80,andthefixed costs per month are OMR 1,000. You are required to;A) Calculate the total costs if Nada produces 10,000 units? B)Calculate the total profit earned by Nada if they produce and sell 10,000 units?
· equipment costing P15,400 per quarter. Additional materials and. labor also process Alpha further means that the company must rent some special Problem 17, page 323C- SHE Inc. (Sell or Process Further) Requirement: What is the effect of the process-further decision on the quarterly operating profit? Problem 17 (Sell or Process Further; Basic Analysis) SHE, Inc., produces three products (Alpha, Beta, and Gamma) from a common input. The joint costs for a typical quarter follow: Direct materials Direct labor Overhead P500,000 36,000 72,000 The revenues from each product are as follows: Alpha, P100,000; Betn, P93,000; and Gamma, P30,000. Management is considering processing Alpha beyond the split-off point, Which would increase the sales values of Alpha to P120,000: However, to needed would cost P8,500 per quarter. SOLUTION & ANSWER:

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