Question

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 = 129,600 900 169,200
Fixed cost (17,000 ) (95,800 ) (112,800 )
Net income $ 22,600 $ 33,800 $ 56,400

    

Required:

A.) Based on budgeted sales, determine the relative sales mix between the two products.

B.) Determine the weighted-average contribution margin per unit.

C.) Calculate the break-even point in total number of units.

D.) Determine the number of units of each product Jordan must sell to break even.

E.) Verify the break-even point by preparing an income statement for each product as well as an income statement for the combined products.

F.) Determine the margin of safety based on the combined sales of the two products.

Homework Answers

Answer #1

A). sales mix betwwen two product

power : lite

180 : 720

1: 4

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
The Company makes and sells products with variable costs of $24 each. Jordan incurs annual fixed...
The Company makes and sells products with variable costs of $24 each. Jordan incurs annual fixed costs of $372,960. The current sales price is $96. Note: The requirements of this question are interdependent. For example, the $288,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements. A. Determine the determine the break-even point in units and dollars. Prepare an income statement using the contribution...
Sales Mix and Break-Even Analysis Jordan Company has fixed costs of $98,260. The unit selling price,...
Sales Mix and Break-Even Analysis Jordan Company has fixed costs of $98,260. 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 Variable Cost per Unit Contribution Margin per Unit Model 94 $100 $60 $40 Model 81 160 140 20 The sales mix for products Model 94 and Model 81 is 70% and 30%, respectively. Determine the break-even point in units of Model 94 and Model...
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a...
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Claimjumper Makeover Total Sales $ 114,000 $ 57,000 $ 171,000 Variable expenses 35,200 7,550 42,750 Contribution margin $ 78,800 $ 49,450 128,250 Fixed expenses 85,500 Net operating income $ 42,750 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare...
The Noble Company manufactures two products. Information about the two products is as follows: Product A...
The Noble Company manufactures two products. Information about the two products is as follows: Product A Product B Selling price per unit $80 $30 Variable costs per unit 45 15 Contribution margin per unit $35 $15 The company expects the fixed costs to be $189,000. The firm expects 60% of its sales (in units) to be of Product A (a sales mix of 3:2). Required: A. Calculate the contribution margin per package. $ B. Determine the break-even point in units...
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a...
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Claimjumper Makeover Total   Sales $ 104,000    $ 52,000      $ 156,000      Variable expenses 25,960 5,240    31,200   Contribution margin $ 78,040 $ 46,760      124,800      Fixed expenses 91,200   Net operating income $ 33,600 Required: 1. Compute the overall contribution margin (CM) ratio for the company.       2. Compute the overall break-even point for...
Electroline Ltd manufactures and sells three products AB, CD and EF. During 2014 the budgeted and...
Electroline Ltd manufactures and sells three products AB, CD and EF. During 2014 the budgeted and actual results were presented to you the management accountant for analysis. Budgeted Results Product Total Sales $ Volume /Units Price$ Contribution margin per unit $ Total Contribution Margin AB 1,500,000 1,000 1,500 700 700,000 CD 4,000,000 2,000 2,000 800 800,000 EF 1,000,000 1,000 1,000 600 600,000 Actual Results Product Total Sales $ Volume /Units Price $ Contribution margin per unit $ Total Contribution Margin...
Calico Corporation makes the following products: Budgeted Sales Unit Contribution Margin Cotton cloth 1,500,000 yds. $.80...
Calico Corporation makes the following products: Budgeted Sales Unit Contribution Margin Cotton cloth 1,500,000 yds. $.80 Wool cloth 1,000,000 yds. $.75 Budgeted fixed costs are $1,560,000.  The break-even point in total yards is:
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a...
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Claimjumper Makeover Total   Sales $ 114,000    $ 57,000      $ 171,000      Variable expenses 35,200 7,550    42,750   Contribution margin $ 78,800 $ 49,450      128,250      Fixed expenses 83,925   Net operating income $ 44,325 Required: 1. Compute the overall contribution margin (CM) ratio for the company.        2. Compute the overall break-even point for...
Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs...
Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 DVDs and 4,500 equipment sets. Information on the two products is as follows: DVDs Equipment Sets Price $8 $25 Variable cost per unit 4 15 Total fixed cost is $98,100. Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale...
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a...
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below:    Claimjumper Makeover Total Sales $96,000 $48,000    $144,000 Variable Expenses    $24,040 $4,760    $28,800 Contribution margin $71,960    $43,240 $115,200 Fixed Expenses    $90,000 Net operating income $25,200 Required: 1. What is the overall contribution margin (cm) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT