Question

MC Qu. 148 Barclay Enterprises manufactures and sells three...

Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $460 and has a unit contribution margin of $185; the Adult model sells for $1,010 and has a unit contribution margin of $530; and the Recreational model sells for $1,160 and has a unit contribution margin of $580. The company's sales mix includes: 5 Youth models; 9 Adult models; and 6 Recreational models. If the firm's annual fixed costs total $6,660,000, calculate the firm's break-even point in composite units (rounded to the nearest whole unit).

Answer #1

Barclay Enterprises manufactures and sells three distinct styles
of bicycles: the Youth model sells for $320 and has a unit
contribution margin of $115; the Adult model sells for $870 and has
a unit contribution margin of $460; and the Recreational model
sells for $1,020 and has a unit contribution margin of $510. The
company's sales mix includes: 5 Youth models; 9 Adult models; and 6
Recreational models. If the firm's annual fixed costs total
$6,520,000, calculate the firm's break-even...

A company manufactures and sells racing bicycles to specialty
retailers. The Bomber model sells for $510 and has per-unit
variable costs of $204 associated with its production. The company
has fixed expenses of $30,000 per month. In May, the company sold
240 of the Bomber model bikes.
A. Calculate the contribution margin per unit
for the Bomber.
Contribution margin $ per unit
B. Calculate the contribution margin ratio of
the Bomber.
Contribution margin ratio %
C. Prepare a contribution margin income...

A company manufactures and sells racing bicycles to specialty
retailers. The Bomber model sells for $600 and has per-unit
variable costs of $300 associated with its production. The company
has fixed expenses of $35,000 per month. In May, the company sold
240 of the Bomber model bikes.
A. Calculate the contribution margin per unit
for the Bomber.
Contribution margin $____ per unit
B. Calculate the contribution margin ratio of
the Bomber.
Contribution margin ratio %___
C. Prepare a contribution margin income...

NoFly Corporation sells three different models of a mosquito
“zapper.” Model A12 sells for $54 and has variable costs of $37.
Model B22 sells for $111 and has variable costs of $79. Model C124
sells for $401 and has variable costs of $315. The sales mix of the
three models is A12, 57%; B22, 29%; and C124, 14%.
What is the weighted-average unit contribution margin?
(Round answer to 2 decimal places, e.g.
15.50.)
Weighted-Average Unit Contribution Margin
$

NoFly Corporation sells three different models of a mosquito
“zapper.” Model A12 sells for $50 and has variable costs of $35.
Model B22 sells for $100 and has variable costs of $70. Model C124
sells for $400 and has variable costs of $300. The sales mix of the
three models is A12, 60%; B22, 15%; and C124, 25%.
What is the weighted-average unit contribution margin?
(Round answer to 2 decimal places, e.g.
15.50.)
Weighted-Average Unit Contribution Margin

Product Profitability Analysis
PowerTrain Sports Inc. manufactures and sells two styles of All
Terrain Vehicles (ATVs), the Mountain Monster and Desert Dragon,
from a single manufacturing facility. The manufacturing facility
operates at 100% of capacity. The following per-unit information is
available for the two products:
Mountain Monster
Desert Dragon
Sales price
$5,800
$3,400
Variable cost of goods sold
3,650
2,280
Manufacturing margin
$2,150
$1,120
Variable selling expenses
990
508
Contribution margin
$1,160
$612
Fixed expenses
550
240
Income from operations...

Product Profitability Analysis
PowerTrain Sports Inc. manufactures and sells two styles of All
Terrain Vehicles (ATVs), the Mountain Monster and Desert Dragon,
from a single manufacturing facility. The manufacturing facility
operates at 100% of capacity. The following per-unit information is
available for the two products:
Mountain Monster
Desert Dragon
Sales price
$6,600
$4,000
Variable cost of goods sold
4,160
2,680
Manufacturing margin
$2,440
$1,320
Variable selling expenses
1,186
560
Contribution margin
$1,254
$760
Fixed expenses
590
300
Income from operations...

Problem 6-4A (Video)
Tanek Industries manufactures and sells three different models of
wet-dry shop vacuum cleaners. Although the shop vacs vary in terms
of quality and features, all are good sellers. Tanek is currently
operating at full capacity with limited machine time.
Sales and production information relevant to each model
follows.
Product
Economy
Standard
Deluxe
Selling price
$36
$60
$120
Variable costs and expenses
$19
$24
$56
Machine hours required
0.5
0.8
1.6
Calculate contribution margin per unit.
Product
Economy...

Coats R Us Inc., manufactures and sells men’s coats. Each coat
sells for $150 and the variable costs per coat is $80. The
company’s fixed costs are $1,400,000. The company has an income tax
rate of 50%.
Compute contribution margin, contribution margin percentage,
breakeven point in sales units, the revenues needed to
breakeven?
Coats R Us has a target monthly net income of $350,000. What is
its target monthly operating income? How many coats must be sold
each month to...

Brenda’s Brakes manufactures three different product lines,
Models X, Y, and Z. The following per unit data apply:
Model X Model
Y Model Z
Selling
price
$50
$60
$70
Direct
materials
6
6
6
Direct labour ($12
per
hour)
12
18
24
Variable support
costs ($4 per machine hour)
4
6
8
Fixed
costs
10
10
10
Required:
If there are a limited number of direct labour hours available
and demand exceeds the...

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