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Bison Company manufactures and sells a number of yarn products. Bison Co. is contemplating the future of XT, a special yarn used in many
Bison Company manufactures and sells a number of yarn products. Bison Co. is contemplating the future of XT, a special yarn used in many elementary schools for art projects, that has not been as profitable as planned. Since XT is manufactured and sold separately of the other products Bison manufactures, its total costs can be precisely measured. Plans for the next year call for a $340 selling price per 100 yards of XT yam (1 unit). Bison's fixed costs for the year are expected to be $421,600, up to a maximum capacity of 550,000 yards of yarn. Forecasted variable costs are $204 per 100 yards of XT yarn. 1. Estimate XTs break-even point in terms of sales units and sales dollars. (Remember t unit = 100 yards) (Do not round intermediate calculations.) Contribution Margin per 100 yds Contribution margn Contritution Margin ratio Choose Numerator Choose Denoeinator Contributian Margin Ratio Contributon margin ratio 1( Estimate Product XT breakeven point in tenms of sales units. (1 unit 100 yarde) Choose Numerator Choose Denominator Break Even Units Break even unts 10)Estimate Product XTs break-even point in terms of sales dollars. Choose Numerater Choose Denominator Break ven Dullars Break even dollars 1. Estimate XT's break-even point in terms of sales units and sales dollars. (Remember 1 unit = 100 yards) (Do not round intermediate calculations.) Contribution Margin per 100 yds. Contribution margin Contribution Margin ratio Choose Numerator: Choose Denominator: Contribution Margin Ratio %3D Contribution margin ratio 1(a) Estimate Product XT's break-even point in terms of sales units. (1 unit 100 yards) Choose Numerator: 1. Choose Denominator: Break-Even Units Break-even units 1(b) Estimate Product XT's break-even point in terms of sales dollars. Choose Numerator: Choose Denominator: Break-Even Dollars Break-even dollars
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