What is composite of e? ngagenow.com/ilrn/takeAssignment/takeASsignmentMain.do?invoker%3D&takeAssignmentSessionLocator=&..Safari Co. sells two products: Orks and Zins. Last year, Safari sold 21,000 units of Orks and 14,000 units of Zins. Related data are as f-Unit SellingUnit VariableUnit ContributionProductPriceCostMarginOrks$120$80$40Zins806020Note: "E" represents composite unit.Determine the following:a. Safari Co.'s sales mixOrks:3 %4 %Zins:b. Safari Co.'s unit selling price of Ec. Safari Co.'s unit contribution margin of Eunitsd. Safari Co.'s break-even sales in units of E assuming that last year's fixed costs were $160,000%24%24

Composite unit is defined as the hypothetical measure which combines the products in the sales mix…

Answered: What is composite of e?

Business

Accounting

What is composite of e?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 19MC: A company sells two products, Model 101 and Model 202. For every one unit of Model 101, they sell...

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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
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.
Morrill Company produces two different types of gauges: a density gauge and a thickness gauge. The segmented income statement for a typical quarter follows. Includes depreciation. The density gauge uses a subassembly that is purchased from an external supplier for 25 per unit. Each quarter, 2,000 subassemblies are purchased. All units produced are sold, and there are no ending inventories of subassemblies. Morrill is considering making the subassembly rather than buying it. Unit-level variable manufacturing costs are as follows: No significant non-unit-level costs are incurred. Morrill is considering two alternatives to supply the productive capacity for the subassembly. 1. Lease the needed space and equipment at a cost of 27,000 per quarter for the space and 10,000 per quarter for a supervisor. There are no other fixed expenses. 2. Drop the thickness gauge. The equipment could be adapted with virtually no cost and the existing space utilized to produce the subassembly. The direct fixed expenses, including supervision, would be 38,000, 8,000 of which is depreciation on equipment. If the thickness gauge is dropped, sales of the density gauge will not be affected. Required: 1. Should Morrill Company make or buy the subassembly? If it makes the subassembly, which alternative should be chosen? Explain and provide supporting computations. 2. Suppose that dropping the thickness gauge will decrease sales of the density gauge by 10 percent. What effect does this have on the decision? 3. Assume that dropping the thickness gauge decreases sales of the density gauge by 10 percent and that 2,800 subassemblies are required per quarter. As before, assume that there are no ending inventories of subassemblies and that all units produced are sold. Assume also that the per-unit sales price and variable costs are the same as in Requirement 1. Include the leasing alternative in your consideration. Now, what is the correct decision?
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.
Use the following information for Multiple-Choice Questions 2-13 through 2-18: Last year, Barnard Company incurred the following costs: Barnard produced and sold 10,000 units at a price of 31 each. 2-14Refer to the information for Barnard Company above. Conversion cost per unit is a. 7.00. b. 20.00. c. 15.00. d. 5.00. e. 27.60.
More-Power Company has projected sales of 75,000 regular sanders and 30,000 mini-sanders for next year. The projected income statement is as follows: Required: 1. Set up the given income statement on a spreadsheet (e.g., ExcelTM). Then, substitute the following sales mixes, and calculate operating income. Be sure to print the results for each sales mix (a through d). 2. Calculate the break-even units for each product for each of the preceding sales mixes.
Craig Co. sells two products, A and B. Last year, Craig sold 14,000 units of A and 21,000 units of B. Related data are as follows: Product Unit SellingPrice Unit VariableCost Unit ContributionMargin A $110 $70 $40 B 70 50 20 What was Craig Co.'s unit contribution margin?
Rusty Co. sells two products: X and Y. Last year, Rusty sold 5,000 units of X and 35,000 units of Y. Related data are as follows: Product Unit SellingPrice Unit VariableCost Unit ContributionMargin X $110 $70 $40 Y 70 50 20 For break-even analysis, the unit contribution margin of E was a.$60.00 b.$40.00 c.$22.50 d.$20.00
Rongon Company manufactures twotypes of product. Selected information is given below:FantasyJoySelling price per unit$25$150Variable expenses per unit$15$35Number of units sold annually20,0005,000Fixed expenses total $480,800 per year. Required: i.Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both dollar and percent columns for each product and for the company as a whole. b. Compute the break-even point in dollars for the company as awhole and the margin of safety in both dollars and percent.ii.The company has developed a new product to be called Delight. Assume that the company could sell 10,000 units at $65each. The variable expenses would be $58each. The company’s fixed expenses would not change. a. Prepare another contribution format income statement, including sales of the Samoan Delight (sales of the other two products would not change). b. Compute the company’s new break-even point in dollars and the new margin…
Carter Co. sells two products: Arks and Bins. Last year, Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data are as follows: Product Unit SellingPrice Unit VariableCost Unit ContributionMargin Arks $120 $80 $40 Bins 80 60 20 Carter Co.'s variable cost of E was a.$64 b.$60 c.$140 d.$70
Driver Company manufactures two products. Data concern-ing these products are shown below: Direct TotalLabor ManufacturingHours OverheadHighest observed level . . . . . . . 6,000 $17,000Lowest observed level . . . . . . . . 4,000 14,000 Product A Product BTotal monthly demand (in units). . 1,000 200Sales price per unit . . . . . . . . . $400 $500Contribution margin ratio. . . . . 30% 40%Relative sales mix . . . . . . . . . . . 80% 20%If fixed costs are equal to $320,000, what amount of totalsales revenue is needed to break even?a. $914,286. c. $320,000.b. $457,143. d. $1,000,000.
Safari Co. sells two products: Orks and Zins. Last year, Safari sold 21,000 units of Orks and 14,000 units of Zins. Related data are as follows: Product Unit SellingPrice Unit VariableCost Unit ContributionMargin Orks $120 $80 $40 Zins 80 60 20 Note: "E" represents composite unit. Determine the following: a. Safari Co.'s sales mix Orks: fill in the blank 1 % Zins: fill in the blank 2 % b. Safari Co.'s unit selling price of E $fill in the blank 3 c. Safari Co.'s unit contribution margin of E $fill in the blank 4 d. Safari Co.'s break-even sales in units of E assuming that last year's fixed costs were $160,000 fill in the blank 5 units of E