(a) Explanation Break-Even Sales: Sales volume required to cover the fixed and variable costs and left out with neither profit nor loss is called break-even point of sales. Services Sales Mix Percentage Total Break-even sales in dollars Sales dollars needed per product Mail pouches and small boxes 80% × 40,000,000 $32,000,000 Non-Standard boxes 20% × 40,000,000 $8,000,000 Total Sales $40,000,000 Table (1) Working Notes: Total break-even sales in dollars } = Total fixed costs Weighted average Contribution margin ratio = $12,000,000 30% (3) = $40,000,000 Compute the weighted-average contribution margin ratio: Weighted − average contribution margin ratio } = [ (b) To determine Compute the Company’s break-even sales when the company like to shift its sales mix while holding the fixed cost, and also determine the amount of sales that are provided by each type of service.

Accounting, Binder Ready Version: Tools for Business Decision Making - Standalone book

6th Edition

ISBN: 9781119191674

Author: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

Publisher: WILEY

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Question

Chapter 19, Problem 8E

(a)

To determine

Compute the Company’s break-even point in total sales dollars and also determine the company’s sales that are provided by each type of service at the break-even point.

(b)

To determine

Compute the Company’s break-even sales when the company like to shift its sales mix while holding the fixed cost, and also determine the amount of sales that are provided by each type of service.

Expert Solution & Answer

Chapter 19 Solutions

Accounting, Binder Ready Version: Tools for Business Decision Making - Standalone book

Ch. 19 - Prob. 1Q Ch. 19 - Prob. 2Q Ch. 19 - Prob. 3Q Ch. 19 - Prob. 4Q Ch. 19 - Prob. 5Q Ch. 19 - Prob. 6Q Ch. 19 - Prob. 7Q Ch. 19 - Prob. 8Q Ch. 19 - Prob. 9Q Ch. 19 - Prob. 10Q

Ch. 19 - Prob. 11Q Ch. 19 - Prob. 12Q Ch. 19 - Prob. 13Q Ch. 19 - Prob. 14Q Ch. 19 - Prob. 15Q Ch. 19 - Prob. 16Q Ch. 19 - Prob. 17Q Ch. 19 - Prob. 18Q Ch. 19 - Prob. 19Q Ch. 19 - Prob. 20Q Ch. 19 - Prob. 21Q Ch. 19 - Prob. 22Q Ch. 19 - Prob. 1BE Ch. 19 - Prob. 2BE Ch. 19 - Prob. 3BE Ch. 19 - Prob. 4BE Ch. 19 - Prob. 5BE Ch. 19 - Prob. 6BE Ch. 19 - Prob. 7BE Ch. 19 - Prob. 8BE Ch. 19 - Prob. 9BE Ch. 19 - Prob. 10BE Ch. 19 - Prob. 11BE Ch. 19 - Prob. 12BE Ch. 19 - Prob. 13BE Ch. 19 - Prob. 14BE Ch. 19 - Prob. 15BE Ch. 19 - Prob. 16BE Ch. 19 - Prob. 17BE Ch. 19 - Prob. 18BE Ch. 19 - Prob. 19BE Ch. 19 - Prob. 1DIE Ch. 19 - Prob. 2DIE Ch. 19 - Prob. 3DIE Ch. 19 - Prob. 4DIE Ch. 19 - Prob. 1E Ch. 19 - Prob. 2E Ch. 19 - Prob. 3E Ch. 19 - Prob. 4E Ch. 19 - Prob. 5E Ch. 19 - Prob. 6E Ch. 19 - Prob. 7E Ch. 19 - Prob. 8E Ch. 19 - Prob. 9E Ch. 19 - Prob. 10E Ch. 19 - Prob. 11E Ch. 19 - Prob. 12E Ch. 19 - Prob. 13E Ch. 19 - Prob. 14E Ch. 19 - Prob. 15E Ch. 19 - Prob. 16E Ch. 19 - Prob. 17E Ch. 19 - Prob. 18E Ch. 19 - Prob. 19E Ch. 19 - Prob. 1AP Ch. 19 - Prob. 2AP Ch. 19 - Prob. 3AP Ch. 19 - Prob. 4AP Ch. 19 - Prob. 5AP Ch. 19 - Prob. 6AP Ch. 19 - Prob. 7AP Ch. 19 - Prob. 8AP Ch. 19 - Prob. 19CD Ch. 19 - Prob. 1EYCT Ch. 19 - Prob. 2EYCT Ch. 19 - Prob. 3EYCT Ch. 19 - Prob. 5EYCT Ch. 19 - Prob. 6EYCT Ch. 19 - Prob. 7EYCT Ch. 19 - Prob. 9EYCT

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