Question

A firm sells three products.

Product 1: $57 sales price per unit; $40 variable cost per
unit.

Product 2: $26 sales price per unit; $13 variable cost per
unit.

Product 3: $105 sales price per unit; $87 variable cost per
unit.

In a typical year, 20% of sales units are Product 1, while 40% of sales units Product 2, and 40% of sales units are Product 3.

If the firm has $118,036 in fixed costs, what is the firm's
breakeven point in * composite units*
(simplify the sales mix so there is one unit of Product 1 per
composite unit)?

Round your final answer to the nearest whole unit.

Answer #1

A firm sells two products, Regular and Ultra. For every unit of
Regular sold, two units of Ultra are sold. The firm's total fixed
costs are $1,876,000. Selling prices and cost information for both
products follow. What is the firm's break-even point in units of
Regular and Ultra?
Product
Unit Sales Price
Variable Cost Per Unit
Regular
$
25
$
11
Ultra
28
7
Multiple Choice
33,500 Regular units and 33,500 Ultra units.
39,083 Regular units and 78,167 Ultra units....

Preston Milled products currently sells a product with a
variable cost per unit of $21.50 and a unit selling price of
$39.50. At the present time, the firm only sells on a cash basis
with monthly sales of 320 units. The monthly interest rate is 1.2
percent. What is the switch break-even point if the firm switched
to a net 30 credit policy? Assume the selling price per unit and
the variable costs per unit remain constant.
335 units
329...

ABC Company sells three products with exactly the same price of
$20 a unit. However, A’s variable cost is at 40%, B’s at 50%, and
C’s at 60%. Sales mix for A, B, and C is at 500, 1500, and 3000
units respectively. Fixed costs amount to $18,000. Breakeven sales
for B should be a. 600 b. 1,200 c. 1,800 d. 2,000
ABC’s sales mix has drastically changed due to market conditions
to 3000, 1500, and 500 units for A,...

Dos Mfg Co. sells two products. Product A sells for $10 per unit
with variable costs of $6 per unit. Product B sells for $20 per
unit with variable costs of $12 per unit. Product A sells 75%,
while B sells 25% of the total units sold. Currently, with combined
sales of 20,000 units, the company made Total Revenue of $250,000,
after subtracting variable cost got Total Contribution Margin of
$100,000, and after subtracting Total Fixed Cost of $50,000, earned...

Morris Industries manufactures and sells three products (AA, BB,
and CC). The sales price and unit variable cost for the three
products are as follows:
Product
Sales Price
per Unit
Variable Cost
per Unit
AA
$45
$35
BB
45
10
CC
35
15
Their sales mix is reflected as a ratio of 5:3:2. Annual fixed
costs shared by the three products are $234,000 per year.
A. What are total variable costs for Morris
with their current product mix?
Total variable...

Steven Company has fixed costs of $186,032. The unit selling
price, variable cost per unit, and contribution margin per unit for
the company's two products are provided below. Product Selling
Price per Unit Variable Cost per Unit Contribution Margin per Unit
X $1,344 $504 $840 Y 538 288 250 The sales mix for Products X and Y
is 60% and 40%, respectively. Determine the break-even point in
units of X and Y. Round answers to the nearest whole number. units...

Steven Company has fixed costs of $430,652. The unit selling
price, variable cost per unit, and contribution margin per unit for
the company's two products are provided below.
Product
Selling Price per Unit
Variable Cost per Unit
Contribution Margin per Unit
X
$1,280
$480
$800
Y
667
357
310
The sales mix for Products X and Y is 60% and 40%, respectively.
Determine the break-even point in units of X and Y. Round
answers to the nearest whole number.
units...

Steven Company has
fixed costs of $195,168. The unit selling price, variable cost per
unit, and contribution margin per unit for the company's two
products are provided below.
Product
Selling Price per Unit
Variable Cost per Unit
Contribution Margin per Unit
X
$1,408
$528
$880
Y
430
230
200
The sales mix for
Products X and Y is 60% and 40%, respectively. Determine the
break-even point in units of X and Y. Round answers to the
nearest whole number.
units...

33.
Madison Corporation sells three products (M, N, and O) in the
following mix: 3:1:2. Unit price and cost data are:
M
N
O
Unit sales price
$
7
$
4
$
10
Unit variable costs
3
2
4
Total fixed costs are $360,000. The selling price per composite
unit for the current sales mix (rounded to the nearest cent)
is:
35.Flannigan Company manufactures and sells a single product
that sells for $450 per unit; variable costs are $252. Annual...

A firm sells two products, Regular and Ultra. For every unit of
Regular the firm sells, two units of Ultra are sold. The firm's
total fixed costs are $2,812,000. Selling prices and cost
information for both products follow. What is the firm's break-even
point in units of Regular and Ultra?
Product
Unit Sales Price
Variable Cost Per
Unit
Regular
$
34
$
12
Ultra
37
11
Multiple Choice
38,000 Regular units and 38,000 Ultra units.
38,000 Regular units and 76,000...

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