Question
Can someone do this question for me please. There are two parts to this question. I need part 1&2 Heres the info for part 2
Can someone do this question for me please.
There are two parts to this question. I need part 1&2
Heres the info for part 2
Of the total fixed expenses of $273,000, $26,800 could be avoided if the Velcro product is dropped, $77,500 if the Metal product is dropped, and $19,300 if the Nylon product is dropped. The remaining fixed expenses of $149,400 consist of common fixed expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely. a. What is the break-even point in unit sales for each product? (Do not round intermediate calculations.) b. If the company sells exactly the break-even quantity of each product, what will be the overall profit of the company? (Do not round intermediate calculations.)
Part 1 Sales Variable expense per unit Contribution Fixed cost Net income Velcro Metal Nylon Total 185400 345600 367200 898200 82400 133900 113300 329600 103000 211700 253900 568600 273000 295600 Contibution Ratio 63.3044% company's over-all break-even point in dollar sales 63.30% 431250 a Velcro Unit selling price Variable expense per unit Contribution Per unit Fixed cost Unit sales to break even 1.8 0.8 1 26800 26800 Metal 1.8 1.3 0.5 77500 155000 Nylon 1.2 1.1 0.1 19300 193000 b Unit sales Sales Variable expenses Contribution margin Fixed expenses Net operating income Velcro Metal Nylon Total 26800 155000 193000 374800 48240 279000 231600 558840 21440 201500 212300 435240 26800 77500 19300 123600 273000 -149400 Part 1 Sales Variable expense per unit Contribution Fixed cost Net income Velcro Metal Nylon Total 185400 345600 367200 898200 82400 133900 113300 329600 103000 211700 253900 568600 273000 295600 Contibution Ratio 63.3044% company's over-all break-even point in dollar sales 63.30% 431250 a Velcro Unit selling price Variable expense per unit Contribution Per unit Fixed cost Unit sales to break even 1.8 0.8 1 26800 26800 Metal 1.8 1.3 0.5 77500 155000 Nylon 1.2 1.1 0.1 19300 193000 b Unit sales Sales Variable expenses Contribution margin Fixed expenses Net operating income Velcro Metal Nylon Total 26800 155000 193000 374800 48240 279000 231600 558840 21440 201500 212300 435240 26800 77500 19300 123600 273000 -149400Step by Step Solution
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