Sales Mix: Sales mix refers to the relative distribution of the total sales among the number of products sold by a company. In other words, it is expressed as a percentage of units sold for each product with respect to the total units sold for all the products. To Determine: The sales mix as a function of units sold for the three products.

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Answer 1

Question

Chapter 6, Problem 6.2DI

(a)

To determine

Sales Mix:

Sales mix refers to the relative distribution of the total sales among the number of products sold by a company. In other words, it is expressed as a percentage of units sold for each product with respect to the total units sold for all the products.

To Determine: The sales mix as a function of units sold for the three products.

(b)

To determine

Contribution Margin:

The process or theory, which is used to judge the benefit given by each unit of the goods produced, is called as contribution margin.

To Determine: The weighted-average unit contribution margin.

(c)

To determine

Break-Even Point:

It is the point of sales at which entity neither earns a profit nor suffers a loss. It can also be said that the point of sales at which sales value of the entity recovers the entire cost of fixed and variable nature is called break-even point

To Determine: The total number of units that the company must produce to break even.

(d)

To determine

Break-Even Point:

It is the point of sales at which entity neither earns a profit nor suffers a loss. It can also be said that the point of sales at which sales value of the entity recovers the entire cost of fixed and variable nature is called break-even point

To Determine: The number of units of each model that the company must produce to break even.

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Sunland Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix (as a percentage of total units) and unit contribution margin are as follows. Sales Mix Unit ContributionMargin Lawnmowers 20 % $33 Weed-trimmers 50 % $22 Chainsaws 30 % $40 Sunland Tools has fixed costs of $4,321,600.Compute the number of units of each product that Sunland Tools must sell in order to break even under this product mix. Break-even point in units Lawnmowers enter a number of units units Weed-trimmers enter a number of units units Chainsaws enter a number of units units

Snow Cap Springs produces and sells water filtration systems for homeowners. Information regarding its three models is shown below. Basic Basic Plus Premium Total Units sold 750 450 300 1,500 Selling price $250 $400 $800 Variable cost $195 $285 $415 The company’s total fixed costs to produce the filtration systems are $180,700. (a) Determine the sales mix as a function of units sold for the three products. Basic Basic Plus Premium The sales mix as a function of units sold % % %

JJ 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. A. What is the overall Composite Unit Contribution Margin for JJ Manufacturing with their current product mix? B. If annual fixed costs shared by the three products are $18,840, how many units of each product are to be sold in order for JJ Manufacturing to break even? Trunk Switch Gas Door Switch Glove Box Light C. Determine their break-even point in sales dollars. Trunk Switch Gas Door Switch Glove Box Light

Answer 2

Question

Chapter 6, Problem 6.2DI

(a)

To determine

Sales Mix:

Sales mix refers to the relative distribution of the total sales among the number of products sold by a company. In other words, it is expressed as a percentage of units sold for each product with respect to the total units sold for all the products.

To Determine: The sales mix as a function of units sold for the three products.

(b)

To determine

Contribution Margin:

The process or theory, which is used to judge the benefit given by each unit of the goods produced, is called as contribution margin.

To Determine: The weighted-average unit contribution margin.

(c)

To determine

Break-Even Point:

It is the point of sales at which entity neither earns a profit nor suffers a loss. It can also be said that the point of sales at which sales value of the entity recovers the entire cost of fixed and variable nature is called break-even point

To Determine: The total number of units that the company must produce to break even.

(d)

To determine

Break-Even Point:

It is the point of sales at which entity neither earns a profit nor suffers a loss. It can also be said that the point of sales at which sales value of the entity recovers the entire cost of fixed and variable nature is called break-even point

To Determine: The number of units of each model that the company must produce to break even.

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Answer 3

Question

Chapter 6, Problem 6.2DI

(a)

To determine

Sales Mix:

Sales mix refers to the relative distribution of the total sales among the number of products sold by a company. In other words, it is expressed as a percentage of units sold for each product with respect to the total units sold for all the products.

To Determine: The sales mix as a function of units sold for the three products.

(b)

To determine

Contribution Margin:

The process or theory, which is used to judge the benefit given by each unit of the goods produced, is called as contribution margin.

To Determine: The weighted-average unit contribution margin.

(c)

To determine

Break-Even Point:

It is the point of sales at which entity neither earns a profit nor suffers a loss. It can also be said that the point of sales at which sales value of the entity recovers the entire cost of fixed and variable nature is called break-even point

To Determine: The total number of units that the company must produce to break even.

(d)

To determine

Break-Even Point:

It is the point of sales at which entity neither earns a profit nor suffers a loss. It can also be said that the point of sales at which sales value of the entity recovers the entire cost of fixed and variable nature is called break-even point

To Determine: The number of units of each model that the company must produce to break even.

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Answer 4

Question

Chapter 6, Problem 6.2DI

(a)

To determine

Sales Mix:

Sales mix refers to the relative distribution of the total sales among the number of products sold by a company. In other words, it is expressed as a percentage of units sold for each product with respect to the total units sold for all the products.

To Determine: The sales mix as a function of units sold for the three products.

(b)

To determine

Contribution Margin:

The process or theory, which is used to judge the benefit given by each unit of the goods produced, is called as contribution margin.

To Determine: The weighted-average unit contribution margin.

(c)

To determine

Break-Even Point:

It is the point of sales at which entity neither earns a profit nor suffers a loss. It can also be said that the point of sales at which sales value of the entity recovers the entire cost of fixed and variable nature is called break-even point

To Determine: The total number of units that the company must produce to break even.

(d)

To determine

Break-Even Point:

It is the point of sales at which entity neither earns a profit nor suffers a loss. It can also be said that the point of sales at which sales value of the entity recovers the entire cost of fixed and variable nature is called break-even point

To Determine: The number of units of each model that the company must produce to break even.

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 6.2DI

(a)

To determine

Sales Mix:

Sales mix refers to the relative distribution of the total sales among the number of products sold by a company. In other words, it is expressed as a percentage of units sold for each product with respect to the total units sold for all the products.

To Determine: The sales mix as a function of units sold for the three products.

(b)

To determine

Contribution Margin:

The process or theory, which is used to judge the benefit given by each unit of the goods produced, is called as contribution margin.

To Determine: The weighted-average unit contribution margin.

(c)

To determine

Break-Even Point:

It is the point of sales at which entity neither earns a profit nor suffers a loss. It can also be said that the point of sales at which sales value of the entity recovers the entire cost of fixed and variable nature is called break-even point

To Determine: The total number of units that the company must produce to break even.

(d)

To determine

Break-Even Point:

It is the point of sales at which entity neither earns a profit nor suffers a loss. It can also be said that the point of sales at which sales value of the entity recovers the entire cost of fixed and variable nature is called break-even point

To Determine: The number of units of each model that the company must produce to break even.

Answer 6

Chapter 6, Problem 6.2DI

(a)

To determine

Sales Mix:

Sales mix refers to the relative distribution of the total sales among the number of products sold by a company. In other words, it is expressed as a percentage of units sold for each product with respect to the total units sold for all the products.

To Determine: The sales mix as a function of units sold for the three products.

Answer 7

Chapter 6, Problem 6.2DI

(a)

To determine

Sales Mix:

Sales mix refers to the relative distribution of the total sales among the number of products sold by a company. In other words, it is expressed as a percentage of units sold for each product with respect to the total units sold for all the products.

To Determine: The sales mix as a function of units sold for the three products.

Answer 8

(b)

To determine

Contribution Margin:

The process or theory, which is used to judge the benefit given by each unit of the goods produced, is called as contribution margin.

To Determine: The weighted-average unit contribution margin.

Answer 9

(b)

To determine

Contribution Margin:

The process or theory, which is used to judge the benefit given by each unit of the goods produced, is called as contribution margin.

To Determine: The weighted-average unit contribution margin.

Answer 10

(c)

To determine

Break-Even Point:

It is the point of sales at which entity neither earns a profit nor suffers a loss. It can also be said that the point of sales at which sales value of the entity recovers the entire cost of fixed and variable nature is called break-even point

To Determine: The total number of units that the company must produce to break even.

Answer 11

(c)

To determine

Break-Even Point:

It is the point of sales at which entity neither earns a profit nor suffers a loss. It can also be said that the point of sales at which sales value of the entity recovers the entire cost of fixed and variable nature is called break-even point

To Determine: The total number of units that the company must produce to break even.

Answer 12

(d)

To determine

Break-Even Point:

It is the point of sales at which entity neither earns a profit nor suffers a loss. It can also be said that the point of sales at which sales value of the entity recovers the entire cost of fixed and variable nature is called break-even point

To Determine: The number of units of each model that the company must produce to break even.

Answer 13

(d)

To determine

Break-Even Point:

It is the point of sales at which entity neither earns a profit nor suffers a loss. It can also be said that the point of sales at which sales value of the entity recovers the entire cost of fixed and variable nature is called break-even point

To Determine: The number of units of each model that the company must produce to break even.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 6 - What is meant by CVP analysis?Ch. 6 - Provide three examples of management decisions...Ch. 6 - Prob. 3Q Ch. 6 - Describe the features of a CVP income statement...Ch. 6 - The traditional income statement for Wheat Company...Ch. 6 - Prob. 6Q Ch. 6 - What is meant by the term sales mix? How does...Ch. 6 - Prob. 8Q Ch. 6 - Prob. 9Q Ch. 6 - Prob. 10Q

Solution Summary: The author determines the sales mix as a function of units sold for Product B, Product BP, and Product P.

Contribution Margin:

The process or theory, which is used to judge the benefit given by each unit of the goods produced, is called as contribution margin.

To Determine: The weighted-average unit contribution margin.

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Chapter 6 Solutions

Solution Summary: The author determines the sales mix as a function of units sold for Product B, Product BP, and Product P.

Contribution Margin: The process or theory, which is used to judge the benefit given by each unit of the goods produced, is called as contribution margin. To Determine: The weighted-average unit contribution margin.

Want to see the full answer?

Chapter 6 Solutions

Contribution Margin:

The process or theory, which is used to judge the benefit given by each unit of the goods produced, is called as contribution margin.

To Determine: The weighted-average unit contribution margin.