Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

30. Ramirez Corporation sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus). Q-Drive has variable costs per

30. Ramirez Corporation sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus). Q-Drive has variable costs per unit of $90 and a selling price of $150. Q-Drive Plus has variable costs per unit of $105 and a selling price of $195. Ramirezs fixed costs are $891,000. How many units of Q-Drive would be sold at the break-even point?

a. 3,300

b. 4,455

c. 11,000

d. 7,700

Use the following information for questions 6869.

Swanson Company has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Swanson incurs $6,660,000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%.

31. The break-even point in dollars is

a. $2,464,200.

b. $15,488,373.

c. $16,650,000.

d. $18,000,000.

32. What will sales be for the Sporting Goods Division at the break-even point?

a. $5,400,000

b. $6,300,000

c. $10,067,442

d. $11,700,000

33. Mercantile Corporation has sales of $2,000,000, variable costs of $800,000, and fixed costs of $900,000.

Mercantiles degree of operating leverage is

a. 1.33.

b. 1.67.

c. 1.50.

d. 4.00.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems The Crossroads Of Accounting And IT

Authors: Donna Ulmer, Donna Kay, Ali Olia

1st Edition

0132132524, 9780132132527

More Books

Students also viewed these Accounting questions

Question

List some factors that would be difficult to monitor.

Answered: 1 week ago

Question

8. What values do you want others to associate you with?

Answered: 1 week ago