Solve part C only (b)Your answer is correct.Determine the number of units to be sold at the break-even point for each product line.Shoes(c)GlovesRange FindersBreak-even point in unitseTextbook and Media++=6402▼77605238Verify that the mix of sales units to be sold at the break-even point for each product line will generate a zero netincome.pairs of shoespairs of gloves$range-findersSunlandGolf AccessoriesCVP Income Statament$Assistance UsedAttempts: 1 of 5 used$ Sunland Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown beloware unit cost and sales data. Sales mix is determined based upon total units sold.Unit selling priceUnit variable costsUnit contribution marginSales mixFixed costs are $677,448.(a1)Your answer is correct.eTextbook and Media(a2)Pairs ofShoes$10658$48Your answer is correct.Break-even point33 %eTextbook and MediaPairs ofGloves$30Weighted-average unit contribution margin $12$1840 %Calculate weighted-average unit contribution margin. (Round answer to 2 decimal places e.g. 10.25.)Range-Finder$245201$44Compute the break-even point in units for the company.27 %19400 units34.92Assistance UsedAttempts: 4 of 5 usedAssistance UsedAttempts: 1 of 5 used

Cost volume profit analysis is the technique used by management for decision-making. The methods…

Answered: Sunland Golf Accessories sells golf…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7PA: Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model...

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Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.
Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost for each follows: Their sales mix is reflected in the ratio 4:4:1. If annual fixed costs shared by the three products are $1 8840 how many units of each product will need to be sold in order forJj to break even?
Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Their sales mix is reflected in the ratio 7:3:2. If annual fixed costs shared by the three products are $196,200, how many units of each product will need to be sold in order for Salvador to break even?
Tim-Buck-Il rents jet skis at a beach resort. There are three models available to rent: Junior, Adult, and Expert. The rental price and variable costs for these three models are as follows: The current product mix is 5:4:1. The three models share total fixed costs of $1 14,750 A. Calculate the sales price per composite unit. B. What is the contribution margin per composite unit? C. Calculate Tim-Buck-IIs break-even point in both dollars and units. D. Using an income statement format, prove that this is the break-even point.
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: In addition, the following sales unit volume information for the period is as follows: a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each. b. What advice would you give to the management of Galaxy Sports Inc. regarding the profitability of the two products?
Use the following information for Multiple-Choice Questions 2-3 and 2-4: Wachman Company produces a product with the following per-unit costs: Last year, Wachman produced and sold 2,000 units at a price of 75 each. Total selling and administrative expense was 30,000. 2-3Refer to the information for Wachman Company on the previous page. Conversion cost per unit was a. 21. b. 25. c. 34. d. 40. e. None of these.
A company sells two products, Model 101 and Model 202. For every one unit of Model 101, they sell they sell two units of Model 202. Sales and cost information for the two products is shown. What is the contribution margin for a composite unit based on the sales mix? $14 $21 $35 $56
Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.
Busy-Bee Baking Company produces a variety of breads. The average price of a loaf of bread is 1. Costs are as follows: Other data: Required: 1. Compute the break-even point in units using conventional analysis. 2. Compute the break-even point in units using activity-based analysis. 3. Suppose that Busy-Bee could reduce the setup cost by 100 per setup and could reduce the number of maintenance hours needed to 1,000. How many units must be sold to break even in this case? (Round answer up to whole units.)
Basu Company produces two types of sleds for playing in the snow: basic sled and aerosled. The projected income for the coming year, segmented by product line, follows: The selling prices are 30 for the basic sled and 60 for the aerosled. (Round break-even packages and break-even units to the nearest whole unit.) Required: 1. Compute the number of units of each product that must be sold for Basu to break even. 2. Assume that the marketing manager changes the sales mix of the two products so that the ratio is five basic sleds to three aerosleds. Repeat Requirement 1. 3. CONCEPTUAL CONNECTION Refer to the original data. Suppose that Basu can increase the sales of aerosleds with increased advertising. The extra advertising would cost an additional 195,000, and some of the potential purchasers of basic sleds would switch to aerosleds. In total, sales of aerosleds would increase by 12,000 units, and sales of basic sleds would decrease by 5,000 units. Would Basu be better off with this strategy?
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 Finders
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 places

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