Question
Banana Boat Company is producing and selling two product-line, Banana Sauce and Banana Chips. The company combined sales total $1,000,000. Sales represent 70% from Banana
Banana Boat Company is producing and selling two product-line, Banana Sauce and Banana Chips. The company combined sales total $1,000,000. Sales represent 70% from Banana Sauce and 30% from Banana Chips. Following are the production data of the company for the period just ended.
| Banana Sauce | Banana Chips |
Variable expenses as percentage of sales. | 55% | 60% |
Fixed expenses (traceable & common) ... | $255,000 | $120,000 |
Average operating assets. | $300,000 | $300,000 |
Required rate of return on investment. | 12% | 12% |
Fixed expenses of $300,000 is common fixed cost and allocated to each product base on each product sales value.
Answer the following from Banana Boat Company information data given above. (Do NOT use comma or dollar signs in your answers).
Determine the following: | Answer |
1. Total contribution margin of Banana Sauce. | Answer |
;2. Total contribution margin of Banana Chips. | Answer |
3. Traceable fixed cost of Banana Sauce. | Answer |
4. Traceable fixed cost of Banana Chips. | Answer |
5. Overall companys rate of return on investment. | Answer % |
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