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bus 106 Required information The following information applies to the questions displayed below) Praveen Company manufactures and markets a number of rope products Management is
bus 106
Required information The following information applies to the questions displayed below) Praveen Company manufactures and markets a number of rope products Management is considering the future of Product XT, a special rope for hang gliding that has not been as profitable as planned. Because Products manufactured and marketed independently of the other products, its total costs can be precisely measured Next year's plans call for a $230 selling price per unit. Its fixed costs for the year are expected to be 591200. Valable costs for the year are expected to be $161 per unit. 1. Estimate Product XT's break even point in terms of sales units and sales dollars. Do not round Intermediate calculation) Contribution Margin per unit Contribution margin Contribution Margin ratio Numerator Denominator Contribution margin to 11a) Estimate Product XTs break-even point in terms of sales units Numerator Denominator events ou not found intermediate calculations) Contribution Margin per unit Contribution margin Contribution Margin ratio Numerator: Denominator: Contribution marge ratio 1(a) Estimate Product XT's break-even point in terms of sales units. Numerator: Denominator: Break-even units 1(b) Estimate Product XT's break-even point in terms of sales dollars. Numerator Denominator Break even dolar prodbie as planned. Because Product XT IS ufactured and marketed independently he other products total costs can be precisely measured. Next yea plans call for a $230 selling price per unit. Its fixed costs for the year are expected to be $331 200 Variable costs for year are expected to be $161 per unit. 2. Prepare a contribution margin income statement for Product at the break-even point. PRAVEEN COMPANY Contribution Margin Income Statement (at Break-Even) - Product XT Units S per unit Total Contribution margin Income Step by Step Solution
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