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Assume that Current Designs will have sales of $3,000,000 with two-thirds of the sales dollars in rotomolded kayaks and one- third of the sales dollars

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Assume that Current Designs will have sales of $3,000,000 with two-thirds of the sales dollars in rotomolded kayaks and one- third of the sales dollars in composite kayaks. Assuming $673,000 of fixed costs are allocated to the rotomolded kayaks and $163,200 to the composite kayaks, prepare a CVP income statement for each product line. Rotomolded Kayaks Composite Kayaks I $ Sales Variable Costs Contribution Margin Fixed Costs 673000 $ > Net Income /(Loss) $ wiew Policies Current Attempt in Progress Cullumber Delivery is a rapidly growing delivery service. Last year, 80% of its revenue came from the delivery of mailing pouches" and small, standardized delivery boxes (which provides a 20% contribution margin). The other 20% of its revenue came from delivering non-standardized boxes (which provides a 70% contribution margin). With the rapid growth of Internet retail sales, Cullumber believes that there are great opportunities for growth in the delivery of non-standardized boxes. The company has fixed costs of $ 13,824.900. Sales mix is determined based upon total sales dollars. (a) What is the company's break-even point in total sales dollars? At the break-even point how much of the company's sales are provided by each type of service? (Use Weighted Average Contribution Margin Ratio rounded to 2 decimal places e.g. 0.22 and round final answers to decimal places, e.g. 2,510.) Total break-even sales Sale of mail pouches and small boxes $ Sale of non-standard boxes (b) The company's management would like to hold its fixed costs constant but shift its sales mix so that 60% of its revenue comes from the delivery of non-standardized boxes and the remainder from pouches and small boxes. If this were to occur, what would be the company's break-even sales, and what amount of sales would be provided by each service type? (Use Weighted Average Contribution Margin Ratio rounded to 2 decimal places eg. 0.22 and round final answers to decimal places, eg. 2,510.) Total break-even sales $ (b) The company's management would like to hold its fixed costs constant but shift its sales mix so that 60% of its revenue comes from the delivery of non-standardized boxes and the remainder from pouches and small boxes. If this were to occur, what would be the company's break-even sales, and what amount of sales would be provided by each service type? (Use Weighted Average Contribution Margin Ratio rounded to 2 decimal places eg. 0.22 and round final answers to decimal places, es 2.510.) Total break-even sales Sale of mail pouches and small boxes $ Sale of non-standardized boxes Sunland Company manufactures and sells two products. Relevant per unit data concerning each product follow. Product Basic Deluxe $43.0 $55.0 Selling price Variable costs Machine hours $25.0 $ 30,5 0.5 0.7 (a) Compute the contribution margin per machine hour for each product. Basic Deluxe Contribution margin per machine hour s Question 2 of 6 20.43/26 E Wildhorse Company had sales in 2021 of $1,830,000 on 60,000 units. Variable costs totaled $ 1,098,000, and fixed costs totaled $ 610,000 A new raw material is available that will decrease the unit variable costs by 20% (or $ 3.66). However, to process the new raw material, fixed operating costs will increase by $ 122,000. Management feels that one half of the decline in the unit variable costs should be passed on to customers in the form of a sales price reduction. The marketing department expects that this sales price reduction will result in a 5% increase in the number of units sold. (a) Prepare a projected CVP income statement for 2022, assuming the changes have not been made. (Round per unit cost to 2 decimal places, eg. 5.25 and all other answers to decimal places, eg. 1.225) WILDHORSE COMPANY CVP Income Statement For the Year Ended December 31, 2022 Total Per Unit 1830000 3050 Variable costs 1090000 1830 732000 Contribution Martin 1220 Fwd Conte 610000 Net Income 122000 (b) Prepare a projected CVP income statement for 2022, assuming that changes are made as described. (Round per unit cost to 2 decimal places, eg 5.25 and all other answers to decimal places, eg, 1.225.) WILDHORSE COMPANY CVP Income Statement For the Year Ended December 31, 2022 Total Per Unit Variable costs 1464 Contribution Margin Fixed Costs 732000 Net Incontos Twthanks and Media

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