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can you please be more careful as it is the second time i have to submitte qustion Multiple-Product Analysis, Changes in Sales Mix, Sales to
can you please be more careful as it is the second time i have to submitte qustion
Multiple-Product Analysis, Changes in Sales Mix, Sales to Earn Target Operating Income Basu Company produces two types of sleds for playing in the snow: basic sled and aerasled. The projected income for the coming year, segmented by product ine, follows: Total $3,000,000 2400,000 $5,400,000 1,000,000 1,000,000 2,000,000 $2,000,000 1,400,000 $3,400,000 650,000 1,42,000 $1,222,000 750,000 ,972,000 198,900 1,773,100 Dasic Sled Aerosled Sales Total variable cost Contribution margin Direct foced cost Product margin Common fixed cout 779,000 Operating income The selling prices are $30 for the basic sled and $60 for the aerosled. (Round break-even packages and break-even units to the nearest whole unit.) Required: L. Compute the number of units of each product that must be sold for Besu to break even. Basic 38,600 x units ero 10,572 x units 2. Assume that the marketing manager changes the sales mix of the two products so that the ratio is five basic sleds to three seroseds. Compute the number of units of each product that must be sold for Basu to break even. Round your answers to the nearest whole number. Basic 39,685 x units er 1636,00 x units 3. Conceptual Connection: Refer to the onginal data. Suppose that Basu can increase the sales of aerosleds with increased advertising. The extra advertising would cost an additional $195,000, and some of the potential purchasers of basic sleds would switch to aerosleds. In total, sales of seros eds would increase by 12.cou units, and sales of basic sleds would decrease by S,000 units, would Basu be better off with this strategy? If so, give the mount of increase in income. 125,000Step by Step Solution
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