Question

Chelonia Ltd manufactures small robot toys. It plans to introduce two products, Speedie and Spunkie. It...

Chelonia Ltd manufactures small robot toys. It plans to introduce two products, Speedie and Spunkie. It is anticipated that the product mix will be 40% Speedie and 60% Spunkie. One unit of Speedie will be sold for $100, with variable cost equals $40. For a unit of Spunkie, the selling price will be $120 and the variable cost is $70. The fixed cost for producing the two products is $108 000. a. What is the break-even point in units for each product? ( 5 marks)

b. The company plans to include a safety margin of $20 000 before tax. Assuming a tax rate of 30%, what should be the budgeted sales in units? ( 5 mark

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Newton Ltd manufactures three products. The expected production levels for each product are shown below. Product...
Newton Ltd manufactures three products. The expected production levels for each product are shown below. Product 1 Product 2 Budgeted production in units 2,700 4,100 Two types of labour are used in producing the three products. Standard times per unit and expected wage rates for the forthcoming year are shown below: Product 1 Product 2 Hours per unit Skilled labour 3 1 Semi-skilled labour 4 4 Skilled labour is to be paid at the rate of $9/hour and semi-skilled labour...
Jonah Hill Company manufactures two products. Information about the two products is as follows:                 Product...
Jonah Hill Company manufactures two products. Information about the two products is as follows:                 Product X Product Y Selling price per unit $80 $30 Variable costs per unit 40 20 Contribution margin per unit $40 $10 The company expects fixed costs to be $185,000. The firm expects 40% of its sales (in units) to be Product X and 60% to be Product Y (a sales mix of 4:6). Calculate the weighted average contribution margin or contribution margin by package...
TheDon Ltd produces three products but the number of machine hours available is limited to 33000...
TheDon Ltd produces three products but the number of machine hours available is limited to 33000 hours. Details of each product are as follows: A B C Selling price per unit                   ¢40 ¢60 ¢66 Variable cost per unit                  ¢30 ¢40 ¢30 Machine hours per unit      4 10 12 Maximum production and sales (units) 2000 1000 2000 The company’s fixed cost per annum is ¢32,000. Required: Determine the optimum product mix for TheDon Ltd. Prepare the...
Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and...
Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $477,000, and the sales mix is 60% bats and 40% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $60 $50 Gloves 150 90 a. Compute the break-even sales (units) for the overall enterprise product, E. units b. How many units of each...
Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and...
Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $256,000, and the sales mix is 80% bats and 20% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $40 $30 Gloves 100 60 a. Compute the break-even sales (units) for the overall enterprise product, E. units b. How many units of each...
Jordan Company produces two products. Budgeted annual income statements for the two products are provided here:...
Jordan Company produces two products. Budgeted annual income statements for the two products are provided here: Power Lite Total Budgeted Per Budgeted Budgeted Per Budgeted Budgeted Budgeted Number Unit Amount Number Unit Amount Number Amount Sales 180 @ $ 650 = $ 117,000 720 @ $ 570 = $ 410,400 900 $ 527,400 Variable cost 180 @ 430 = (77,400 ) 720 @ 390 = (280,800 ) 900 (358,200 ) Contribution margin 180 @ 220 = 39,600 720 @ 180...
EZ Toys’ Stuffed Animals Division has two products: cat and dog. Data on the two products...
EZ Toys’ Stuffed Animals Division has two products: cat and dog. Data on the two products for October are as follows. cat dog Standard selling price $20 $12 Standard variable cost 12 8 Budgeted sales quantity 2,500 7,500 Actual sales quantity 3,000 5,000 Required: Determine the Stuffed Animals Division’s sales mix and sales quantity variances for October.
Exercise 20-17 Tharp Company operates a small factory in which it manufactures two products: C and...
Exercise 20-17 Tharp Company operates a small factory in which it manufactures two products: C and D. Production and sales results for last year were as follows. C D Units sold 9,000 19,900 Selling price per unit $94 $75 Variable cost per unit 53 39 Fixed cost per unit 20 20 For purposes of simplicity, the firm averages total fixed costs over the total number of units of C and D produced and sold.    The research department has developed a...
Sales Mix and Break-Even Sales New Wave Technology Inc. manufactures and sells two products, MP3 players...
Sales Mix and Break-Even Sales New Wave Technology Inc. manufactures and sells two products, MP3 players and satellite radios. The fixed costs are $325,600, and the sales mix is 60% MP3 players and 40% satellite radios. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost MP3 players $80 $60 Satellite radios 200 120 a. Compute the break-even sales (units) for both products combined. units b. How many...
Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs...
Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $260,400, and the sales mix is 40% bats and 60% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $40 $30 Gloves 100 60 a. Compute the break-even sales (units) for both products combined. fill in the blank 1 units b. How many units of each product, baseball...