Question

​Jackie's Snacks sells​ fudge, caramels, and popcorn. It sold​ 9,000 units last year. Popcorn outsold fudge...


​Jackie's Snacks sells​ fudge, caramels, and popcorn. It sold​ 9,000 units last year. Popcorn outsold fudge by a margin of 2 to 1. Sales of caramels were the same as sales of popcorn. Fixed costs for​ Jackie's Snacks are​ $10,000. Additional information​ follows:

Product

Unit Sales Prices

Unit Variable Cost

Fudge

​$5

​$2.00

Caramels

​$8

​$6.00

Popcorn

​$7

​$3.00

The breakeven sales volume in units for​ Jackie's Snacks is​ (Round the final answer up to the nearest​ unit.)

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

let fudge sales = x

popcorn sales = 2 x fudge sales = 2x

caramel sales = popcorn = 2x

total sales = x + 2x+ 2x = 5x

9000 units = 5x

x = 1800 units

popcorn and caramel sales = 2 x 1800 = 3600 units each

fudge sales = 1800 units

fixed costs = 10000

contribution of

fudge = 5 - 2 = 3 per unit

caramel = 8 -6 = 4 per unit

popcorn = 7 -3 = 4 per unit

Weighted average contribution per unit = contribution x sales for all products / total sales

Weighted average contribution per unit = (3 x 1800 + 4 x 3600 + 4 x 3600) / 9000

Weighted average contribution per unit = 34200/9000

Weighted average contribution per unit = 3.8

Breakeven sales = fixed costs / Weighted average contribution per unit

Breakeven sales = 10000/3.8

Breakeven sales = 2631.57 = 2632 (rounded off)

Thanks! if you have any doubts do leave a comment and let me know

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
?Jackie's Creamery sells? fudge, caramels, and popcorn to consumers in the local community. The manager at...
?Jackie's Creamery sells? fudge, caramels, and popcorn to consumers in the local community. The manager at the creamery sold 10 comma 000 units last year. Popcorn outsold fudge by a ratio of 2 to 1. Sales of caramels equaled sales of popcorn. Total fixed costs for? Jackie's Creamery are $ 11 comma 000. The managerial accountant reported the following? information: Product Unit Sales Prices Unit Variable Cost Fudge $ 9 $ 7 Caramels $ 5 $ 3 Popcorn $ 10...
So frustrated right now. Can someone explain this problem to me? How do they come up...
So frustrated right now. Can someone explain this problem to me? How do they come up with 40%? Jackie's Creamery sells fudge, caramels, and popcorn to consumers in the local community. The manager at the creamery sold 14,000 units last year. Popcorn outsold fudge by a ratio of 2 to 1. Sales of caramels equaled sales of popcorn. Total fixed costs for Jackie's Creamery are $13,000. The managerial accountant reported the following information: Fudge Caramel Popcorn Sales $6.00 $8.00 $9.00...
How is profit indicated on a cost-volume-profit graph? Wuntch Products sold 100,000 units last year for...
How is profit indicated on a cost-volume-profit graph? Wuntch Products sold 100,000 units last year for $2.00 each. Variable costs per unit were $0.30 for direct materials, $0.50 for direct labor, and $0.30 for variable overhead. Fixed costs were $60,000 in manufacturing overhead and $40,000 in nonmanufacturing costs. a. What is the total contribution margin? b. What is the unit contribution margin? c. What is the contribution margin ratio? d. If sales increase by 20,000 units, by how much will...
Bobby Co. sells two products, X and Y. Last year, Bobby sold 18,000 units of X's...
Bobby Co. sells two products, X and Y. Last year, Bobby sold 18,000 units of X's and 12,000 units of Y's. 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 X $180 $100 $80 Y $100 $60 $40 Assuming that last year’s fixed costs totaled $160,000. What was Bobby Co's break-even point in units of enterprise product...
Shine Jewelry sells 400400 units resulting in $ 9 comma 000$9,000 of sales​ revenue, $ 4...
Shine Jewelry sells 400400 units resulting in $ 9 comma 000$9,000 of sales​ revenue, $ 4 comma 000$4,000 of variable​ costs, and​ $1,500 of fixed costs. Contribution margin per unit is​ ________.
Burger Bob’s Boathouse sells only one product. 7,000 units were sold in a year resulting in...
Burger Bob’s Boathouse sells only one product. 7,000 units were sold in a year resulting in $70,000 of sales revenue. Variable costs were $40,041 for the year, and fixed costs were $12,100. 4.   Contribution margin per unit is a.   $6.00 b.   $4.29 c.   $4.00 d.   $4.28 e.   $4.27 5.   Break-even point in volume is a.   2,827 units. b.   2,828 units. c.   2,827.1 units. d.   2,827.103 units. e.   2,827.102 units. 6.   The number of units required to be sold to achieve...
relevant range of activity is 6,000 units to 10,000 units. When it produces and sells 8,000...
relevant range of activity is 6,000 units to 10,000 units. When it produces and sells 8,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.40 Direct labor $ 3.00 Variable manufacturing overhead $ 1.30 Fixed manufacturing overhead $ 13.20 Fixed selling expense $ 2.20 Fixed administrative expense $ 1.60 Sales commissions $ 0.60 Variable administrative expense $ 0.50 Required: a. For financial reporting purposes, what is the total amount of product costs...
A firm sells two products, Regular and Ultra. For every unit of Regular sold, two units...
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....
Carter Co. sells two products, Arks and Bins. Last year Carter sold 14,000 units of Arks...
Carter Co. sells two products, Arks and Bins. Last year Carter sold 14,000 units of Arks and 56,000 units of Bins. Product Unit Selling Price Unit Variable Cost Unit Contribution Margin Arks $120 $80 $20 Bins 80 60 40 What was Carter Co.'s weighted average unit contribution margin? A. $24 B. $30 C.$36 D.$32
Krepps Corporation produces a single product. Last year, Krepps manufactured 33,100 units and sold 27,800 units....
Krepps Corporation produces a single product. Last year, Krepps manufactured 33,100 units and sold 27,800 units. Production costs for the year were as follows: Direct materials $ 248,250 Direct labor $ 145,640 Variable manufacturing overhead $ 274,730 Fixed manufacturing overhead $ 595,800 Sales totaled $1,320,500 for the year, variable selling and administrative expenses totaled $164,020, and fixed selling and administrative expenses totaled $205,220. There was no beginning inventory. Assume that direct labor is a variable cost. The contribution margin per...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT