Olmstead Company has fixed costs of $459,000. The unit selling price, variable cost per unit, and contribution
Question:
Olmstead Company has fixed costs of $459,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products follow:
The sales mix for Products QQ and ZZ is 70% and 30%, respectively. Determine the break-even point in units of QQ and ZZ.
Transcribed Image Text:
Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $40 $15 $25 60 25 35
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 77% (9 reviews)
Breakeven pointFixed costContribution margin per unit Fixe...View the full answer
Answered By
Priyansh Agarwal
I am a qualified Chartered Accountant from India and CFA Level 3 candidate.So well versed with accounting and financing concepts.Also I have 2 year of tutoring experience where I have solved more than 2,000 queries of US Students.I am well versed with US GAAP and also all the financing concepts.Currently I am working for a Swiss investment Bank in their Equity research division.So I have more than 3 years of professional experience and 2 years of teaching experience.
0.00
0 Reviews
10+ Question Solved
Related Book For
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider
Question Posted:
Students also viewed these Business questions
-
In the widget industry, each firm has fixed costs of $10 and faces the following marginal cost curve: Quantity Marginal Cost 1 ............... $2 per widget 2 ............... 4 3 ............... 5 4...
-
Hackworth Company has fixed costs of $150,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. The sales mix for...
-
Brubaker Company has fixed costs of $120,000. The unit selling price, variable cost per unit, and contribution margin per unit for the companys two products are provided below. The sales mix for...
-
For each polynomial function, find (a) (-1), (b) (2), and (c) (0). f(x)=x5x4
-
Why is it useful to distinguish between brand positioning strategy and brand position?
-
Kyle Peschken has been a manager for the discount store, Zelmart, for the past two years. Its time for his annual performance review, and Kyle would like to make a big impression on the corporate...
-
Show how the conglomerate discount leads to an increase in the cost of equity.
-
Crawford Pharmaceuticals has developed a new drug, Vaxidene. The target amount for a single dose of Vaxidene is 100 mg. Patients can receive as little as 98 mg or as much as 102 mg without...
-
"Events A and B are independent if the occurrence of one does not affect the probability of the other occurring." This statement is best represented in symbols by OP(A|B) = P(A) OA | B = A OP(A and...
-
Emergency calls to the 911 system of Durham, North Carolina, for the past 24 weeks are shown in the following table: a) Compute the exponentially smoothed forecast of calls for each week. Assume an...
-
Felipe Enterprises reports the following data: Sales ......................................... $330,000 Variable costs ............................ 140,000 Contribution margin ..................
-
a. Imelda Company budgets sales of $1,800,000, fixed costs of $394,000, and variable costs of $1,116,000. What is the contribution margin ratio for Imelda Company? b. If the contribution margin ratio...
-
Based on the discussion about force field analysis, why is it hard for people to lose weight and keep it off?
-
Topanga Group began operations early in 2024. Inventory purchase information for the quarter ended March 31, 2024, for Topanga's only product is provided below. The unit costs include the cost of...
-
An extract from a printing company's 2021 financial statements follows: Balance sheet Total assets Total liabilities Total stockholders' equity As of December 31, 2021 As of December 31, 2020 57,699...
-
Matador Company reports net income of $150,000 each year and declares an annual cash dividend of $50,000. The company holds net assets of $1,800,000 on January 1, 2017. On that date, Zelzah purchases...
-
During the first year of operation, Year 1, McGinnis Appliance recognized $292,000 of service revenue on account. At the end of Year 1, the accounts receivable balance was $57,400. Even though this...
-
A two-dimensional compressor cascade is tested in air (y = 1.4, Cp = 1004.5 J/kgK) with an inlet stagnation pressure of 1 bar and an inlet stagnation temperature of 300 K. For an inlet Mach number of...
-
In Alcohol & Alcoholism (Jan. /Feb. 2007), psychologists at the University of Pennsylvania compared the levels of alcohol consumption of male and female freshman students. Each student was asked to...
-
Which property determines whether a control is available to the user during run time? a. Available b. Enabled c. Unavailable d. Disabled
-
What are the possible treatments for tax purposes of a net operating loss? What are the circumstances that determine the option to be applied? What is the proper treatment of a net operating loss for...
-
What are the possible treatments for tax purposes of a net operating loss? What are the circumstances that determine the option to be applied? What is the proper treatment of a net operating loss for...
-
What are the possible treatments for tax purposes of a net operating loss? What are the circumstances that determine the option to be applied? What is the proper treatment of a net operating loss for...
-
Question 20 (1 point) Listen The Carters contributed $8,000 to the Path for Progress Political Action Committee What is the tax treatment of this contribution? O Deductible on Schedule E as an...
-
The Sheffield and Frizell Dental Clinic provides both preventive and orthodontic dental services. The two owners, Reese Sheffield and Anita Frizell, operate the clinic as two separate investment...
-
Montoure Company utiliza un sistema de inventario peridico. Realiz las siguientes transacciones de compra y venta en el ao calendario. Fecha Actividades Unidades Adquiridas al Costo Unidades vendidas...
Study smarter with the SolutionInn App