Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Calculating CVP Multiple Product Starting from January 1, 2024 Large Mud Pillow Limited will introduce two new products. The key financial information related to these

image text in transcribed

Calculating CVP Multiple Product Starting from January 1, 2024 Large Mud Pillow Limited will introduce two new products. The key financial information related to these products are as follows: Activity Selling Price Direct Material (per unit) Direct Labour (per unit) Variable Manufacturing Overhead (per unit) Variable Selling Expense (per unit) Fixed Manufacturing Overhead (total) Fixed Administrative Overhead (total) Fixed Marketing (total) Donut Pillow $78.90 $10.01 $4.50 $8.73 $2.98 $121,580,000 $72.220,000 $92,600,000 Duck Blankets $146.90 $15.11 $6.50 $12.73 $9.98 $166,980,000 $255,780,000 $95,550,000 Feet Warmers $181.15 $5.11 $6.50 $2.73 $4.98 $95,550,000 $255,780,000 $95,550,000 The company projects a sales mix of 50:30:20. The company is planning to product and sell a total of 20,000,000 units in 2024. Required: 1. Compute the contribution margin per unit. 2. Compute the contribution margin ratio. 3. Determine the number of units to be sold at the breakeven point. 4. Determine the revenue at the breakeven point. 5. Assume the company wishes to achieve a net profit of $45,000,000. Determine the number of units to be sold to achieve that level of net profit. 6. Assume the company wishes to achieve a net profit of $25,000,000. Determine the revenue to be achieved that gives that level of net profit

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

Internal Auditors For Stock Brokers

Authors: National Institute Of Securities Markets (NISM)

1st Edition

9350717581, 978-9350717585

More Books

Students also viewed these Accounting questions

Question

Does it have correct contact information?

Answered: 1 week ago