Question

2-2 Current Designs manufactures two different types of kayaks, rotomoulded kayaks and composite kayaks. The following...

2-2

Current Designs manufactures two different types of kayaks, rotomoulded kayaks and composite kayaks. The following information is available for each product line.
Rotomoulded Composite
Sales price/unit $840 $1,760
Variable costs/unit $500 $1,180

The company’s fixed costs are $722,000. An analysis of the sales mix identifies that rotomoulded kayaks make up 80% of the total units sold.

(a)

Your answer is correct.
Determine the weighted-average unit contribution margin for Current Designs.
Weighted-average unit contribution margin

$388
(CORRECT!)
Attempts: 1 of 1 used

(b)

Your answer is correct.
Determine the break-even point in units for Current Designs and identify how many units of each type of kayak will be sold at the break-even point. (Round answers to 0 decimal places, e.g. 5,275.)
Break-even Sales

$1861

 units
(CORRECT)!
Rotomolded Kayaks Composite Kayaks
Break-even Sales Distribution

1489

 units

372

 units
(CORRECT!)
Attempts: 1 of 1 used

(c)

Assume that the sales mix changes, and rotomoulded kayaks now make up 70% of total units sold.

Calculate the total number of units that would need to be sold to earn a net income of $1.76 million and identify how many units of each type of kayak will be sold at this level of income. (Round answers to 0 decimal places, e.g. 5,275.)
Required Sales units
Rotomolded Kayaks Composite Kayaks
Break-even Sales Distribution units units

Answers to Question A and B are correct. Please use information from A,B to answer question C. Thank You

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Decision Making 6-1 Current Designs manufactures two different types of kayaks, rotomoulded kayaks and composite kayaks....
Decision Making 6-1 Current Designs manufactures two different types of kayaks, rotomoulded kayaks and composite kayaks. The following information is available for each product line. Rotomoulded Composite Sales price/unit $910 $1,920 Variable costs/unit $550 $1,290 The company’s fixed costs are $787,000. An analysis of the sales mix identifies that rotomoulded kayaks make up 80% of the total units sold. Determine the weighted-average unit contribution margin for Current Designs. Weighted-average unit contribution margin $____ Determine the break-even point in units for...
Diane Buswell is preparing the 2020 budget for one of Current Designs’ rotomolded kayaks. Extensive meetings...
Diane Buswell is preparing the 2020 budget for one of Current Designs’ rotomolded kayaks. Extensive meetings with members of the sales department and executive team have resulted in the following unit sales projections for 2020. Quarter 1 2,800 kayaks Quarter 2 3,600 kayaks Quarter 3 2,400 kayaks Quarter 4 2,400 kayaks Current Designs’ policy is to have finished goods ending inventory in a quarter equal to 25% of the next quarter’s anticipated sales. Preliminary sales projections for 2021 are 1,100...
Break-Even Point and Target Profit Measured in Units (Multiple Products). Hi-Tech Incorporated produces two different products...
Break-Even Point and Target Profit Measured in Units (Multiple Products). Hi-Tech Incorporated produces two different products with the following monthly data. Cell GPS Total Selling price per unit $100 $400 Variable cost per unit $  40 $240 Expected unit sales 21,000 9,000 30,000 Sales mix 70 percent 30 percent 100 percent Fixed costs $1,800,000 Assume the sales mix remains the same at all levels of sales. Required: Calculate the weighted average contribution margin per unit. How many units in total must...
Snow Cap Springs produces and sells water filtration systems for homeowners. Information regarding its three models...
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 1,200 420 380 2,000 selling price 246 395 795 variable cost 197 290 417 The company’s total fixed costs to produce the filtration systems are $147,924. a) Determine the sales mix as a function of units sold for the three products. (Round answers to 0 decimal places, e.g. 12.) basic basic plus premium the...
Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301....
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: Product Sales Price per Unit Variable Cost per Unit Model 101 $270      $190        Model 201 350      220        Model 301 395      240        The current product mix is 4:3:2. The three models share total fixed costs of $714,000. A. Calculate the sales price per composite unit. Sales price $ per composite unit B....
Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301....
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: Product Sales Price per Unit Variable Cost per Unit Model 101 $280      $185        Model 201 350      215        Model 301 405      240        The current product mix is 4:3:2. The three models share total fixed costs of $334,500. A. Calculate the sales price per composite unit. Sales price $ per composite unit B....
Exercise 18-17 (Part Level Submission) Felde Bucket Co., a manufacturer of rain barrels, had the following...
Exercise 18-17 (Part Level Submission) Felde Bucket Co., a manufacturer of rain barrels, had the following data for 2016. Sales 2,000 units Sales price $30 per unit Variable costs $18 per unit Fixed costs $11,520 Collapse question part (a) Correct answer. Your answer is correct. What is the contribution margin ratio? (Round answer to 0 decimal places, e.g. 5,275.) Contribution margin ratio Entry field with correct answer 40 % Click if you would like to Show Work for this question:...
Waterways Continuing Problem 06 (Part 1) Waterways has a sales mix of sprinklers, valves, and controllers...
Waterways Continuing Problem 06 (Part 1) Waterways has a sales mix of sprinklers, valves, and controllers as follows. Annual expected sales: Sale of sprinklers 509,800 units at $27.00 Sale of valves 1,447,832 units at $11.00 Sale of controllers 81,568 units at $43.00 Variable manufacturing cost per unit: Sprinklers $14.00 Valves $8.00 Controllers $30.00 Fixed manufacturing overhead cost (total) $703,000 Variable selling and administrative expenses per unit: Sprinklers $1.00 Valves $1.00 Controllers $3.00 Fixed selling and administrative expenses (total) $1,720,496 Determine...
Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below...
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 of Shoes Pairs of Gloves Range- Finder Unit sales price $105 $32 $245 Unit variable costs 59 10 205 Unit contribution margin $46 $22 $40 Sales mix 31 % 41 % 28 % Fixed costs are $658,568. Calculate weighted-average unit contribution margin. (Round answer to 2 decimal places e.g. 10.25.) Weighted-average unit contribution margin $ eTextbook and...
Sales Mix and Break-Even Sales Data related to the expected sales of laptops and tablets for...
Sales Mix and Break-Even Sales Data related to the expected sales of laptops and tablets for Tech Products Inc. for the current year, which is typical of recent years, are as follows: Products Unit Selling Price Unit Variable Cost Sales Mix Laptops $230 $160 20% Tablets 440 210 80% The estimated fixed costs for the current year are $201,960. Required: 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT