Answered step by step
Verified Expert Solution
Question
1 Approved Answer
3. Sales mix and CVP Analysis : Goalies Ball, Inc. produces and sells two different types of soccer goals: basic and premium. Monthly information regarding
3. Sales mix and CVP Analysis: Goalies Ball, Inc. produces and sells two different types of soccer goals: basic and premium. Monthly information regarding the two types of goals are shown below:
| Basic | Premium | Total | ||||
Sales | $ | 1,080,000 |
|
| $720,000 | $1,800,000 | |
Variable costs |
| $315,400 |
|
| $294,100 |
| $609,500 |
|
|
|
|
|
|
|
|
Fixed expenses are $517,250 per month in total for the company.
- Determine the sales mix for the two products
- Determine the contribution margin ratio for each of the two products (round your decimal answer to four decimal places, i.e. 0.3149322 = 0.3149 = 31.49%)
- Calculate the weighted average contribution margin (WACM) ratio (round your decimal answer to four decimal places, i.e. 0.3149322 = 0.3149 = 31.49%)
- Calculate Goalies Balls break-even point in dollars. Round to the nearest cent (i.e. two decimal places)
- The manager of Goalies Ball is considering a shift in sales mix, increasing sales of basic goals to 65% and decreasing sales of premium goals to 35%. How would this affect the break-even point in dollars? Briefly explain your answer.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started