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141- Q Preventing Teenage... 5' Parental Consenta... E AgeisMoreThan a... Q Preventing Teenage... 0 Student eLab VitaISource Booksh... E Prolerlearni'ngC. Bookshelf per Unit per Unit

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\"141-" Q Preventing Teenage... 5'" Parental Consenta... E AgeisMoreThan a... Q Preventing Teenage... 0 Student eLab VitaISource Booksh... E Prolerlearni'ngC. Bookshelf per Unit per Unit Basic $5.00 $1.75 Deluxe 9.00 8.10 The company is Interested In determining how many of each type of bookshelf would have to be sold In order to break even. If we think of the Basic and Deluxe products as components of one oye'rail enterprise product called \"Combined,\" the unit contribution margin for the Combined product would be $2.31. Fixed costs for the upcoming year are estimated at $346,500. Recall that the totals of all the sales mix percents must be 100%. Determine the amounts to complete the following table. Type of Percent of BreakEven Sales Break-Even Sales Bookshelf Sales Mix in Units in Dollars Target Prot Refer again to the income statements for Cover-to-Coyer Company and Biblio Files Company on their respective Income Statement. Note that both companies have the same sales and net income, Answer questions (1) (3) that follow, assuming that all data for the coming year is the same as the current year, except for the amount of sales. 1. If Cover-toCover Company wants to Increase its profit by $20,000 In the coming year, what must their amount of sales be? SI: 2. if Biblio Files Company wants to increase Its prot by $20,000 In the coming year, what must their amount of sales he? 4:I 3. What would explain the difference between your answers for (1) and (2)7 a. Biblio Files Company has a higher contribution margin rao, and so more of each sales dollar Is available to cover xed costs and provide operating Income. b. Cover-to-Cover Company's contribution margin ratio is lower, meaning that It's more efficient In Its operations. c. The companies have goals that are notin the relevant mnge. d. The answers are not different; each company has the same required sales amount for the coming year to achieve the desired target prot. L b I Check My Work 2 more Check My Work uses remaining. 3:10 PM F 5/13/2021 '9

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