Question
On-the-Go, Inc., produces two models of traveling cases for laptop computers—the Programmer and the Executive. The...
On-the-Go, Inc., produces two models of traveling cases for laptop computers—the Programmer and the Executive. The bags have the following characteristics.
| Programmer | Executive | |||||
| Selling price per bag | $ | 70 | $ | 90 | ||
| Variable cost per bag | $ | 40 | $ | 40 | ||
| Expected sales (bags) per year | 8,000 | 12,000 | ||||
The total fixed costs per year for the company are $668,000
a. What is the anticipated level of profits for the expected sales volumes?
b. Assuming that the product mix is the same at the break-even point, compute the break-even point.
c. If the product sales mix were to change to nine Programmer-style bags for each Executive-style bag, what would be the new break-even volume for On-the-Go?
What is the anticipated level of profits for the expected sales volumes?
|
Assuming that the product mix is the same at the break-even point, compute the break-even point
|
If the product sales mix were to change to nine Programmer-style bags for each Executive-style bag, what would be the new break-even volume for On-the-Go?
|
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
Sell Block prepares three types of simple tax returns: individual, partnerships, and (small) corporations. The tax...
Sell Block prepares three types of simple tax returns: individual,
partnerships, and (small) corporations. The tax returns have the
following characteristics:
Individuals
Partnerships
Corporations
Price charged per tax return
$
280
$
1,150
$
1,900
Variable cost per tax return (including wage paid to tax
preparer)
$
215
$
1,050
$
1,740
Expected tax returns prepared per year
33,000
11,000
11,000
The total fixed costs per year for the company are $882,700.
Required:
a. What is the
anticipated level of...
Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been...
Due to erratic sales of its sole product—a high-capacity battery
for laptop computers—PEM, Inc., has been experiencing financial
difficulty for some time. The company’s contribution format income
statement for the most recent month is given below:
Sales (19,500 units × $30 per unit)
$
585,000
Variable expenses
409,500
Contribution margin
175,500
Fixed expenses
180,000
Net operating loss
$
(4,500
)
Required:
Compute the company’s CM ratio and per unit Contribution
Margin
Compute the company’s break-even point in unit sales...
Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been...
Due to erratic sales of its sole product—a high-capacity battery
for laptop computers—PEM, Inc., has been experiencing difficulty
for some time. The company’s contribution format income statement
for the most recent month is given below:
Sales (12,700 units
× $40 per unit)
$
508,000
Variable
expenses
254,000
Contribution
margin
254,000
Fixed expenses
284,000
Net operating
loss
$
(30,000)
Required:
1.
Compute the company’s CM ratio and its break-even point in both
unit sales and...
Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been...
Due to erratic sales of its sole product—a high-capacity battery
for laptop computers—PEM, Inc., has been experiencing financial
difficulty for some time. The company’s contribution format income
statement for the most recent month is given below:
Sales (13,400 units
× $20 per unit)
$
268,000
Variable expenses
134,000
Contribution margin
134,000
Fixed expenses
149,000
Net operating loss
$
(15,000
)
Required:
1. Compute the company’s CM ratio and its break-even point in
unit sales and dollar sales.
2. The...
Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been...
Due to erratic sales of its sole product—a high-capacity battery
for laptop computers—PEM, Inc., has been experiencing financial
difficulty for some time. The company’s contribution format income
statement for the most recent month is given below:
Sales (13,200 units × $20 per unit) $ 264,000 Variable expenses
158,400 Contribution margin 105,600 Fixed expenses 117,600 Net
operating loss $ (12,000 ) Required: 1. Compute the company’s CM
ratio and its break-even point in unit sales and dollar sales. 2.
The...
Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been...
Due to erratic sales of its sole product—a high-capacity battery
for laptop computers—PEM, Inc., has been experiencing financial
difficulty for some time. The company’s contribution format income
statement for the most recent month is given below:
Sales (13,400 units × $30 per unit)
$
402,000
Variable expenses
241,200
Contribution margin
160,800
Fixed expenses
178,800
Net operating loss
$
(18,000
)
Required:
1. Compute the company’s CM ratio and its break-even point in
unit sales and dollar sales.
2. The...
Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been...
Due to erratic sales of its sole product—a high-capacity battery
for laptop computers—PEM, Inc., has been experiencing financial
difficulty for some time. The company’s contribution format income
statement for the most recent month is given below:
Sales (13,300 units × $30 per unit)
$
399,000
Variable expenses
239,400
Contribution margin
159,600
Fixed expenses
177,600
Net operating loss
$
(18,000
)
Required:
1. Compute the company’s CM ratio and its break-even point in
unit sales and dollar sales.
2. The...
Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been...
Due to erratic sales of its sole product—a high-capacity battery
for laptop computers—PEM, Inc., has been experiencing financial
difficulty for some time. The company’s contribution format income
statement for the most recent month is given below:
Sales (12,700 units × $30 per unit)
$
381,000
Variable expenses
228,600
Contribution margin
152,400
Fixed expenses
170,400
Net operating loss
$
(18,000
)
Required:
1. Compute the company’s CM ratio and its break-even point in
unit sales and dollar sales.
2. The...
Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been...
Due to erratic sales of its sole product—a high-capacity battery
for laptop computers—PEM, Inc., has been experiencing financial
difficulty for some time. The company’s contribution format income
statement for the most recent month is given below:
Sales (13,000 units × $20 per unit)
$
260,000
Variable expenses
130,000
Contribution margin
130,000
Fixed expenses
145,000
Net operating loss
$
(15,000
)
5. Refer to the original data. By automating, the company could
reduce variable expenses by $3 per unit. However,...
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...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 8 minutes ago
asked 10 minutes ago
asked 17 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 2 hours ago
asked 2 hours ago