Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CH 09 Seved Exercise 9-36 (Algo) Multiple Product CVP Analysis (LO 9-6) Smith Company can produce two types of carpet cleaners, Brighter and Cleanec Data

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
CH 09 Seved Exercise 9-36 (Algo) Multiple Product CVP Analysis (LO 9-6) Smith Company can produce two types of carpet cleaners, Brighter and Cleanec Data on these two products are as follows: Sales volume in units Unit sales price Unit variable cost Brinter 400 $1,000 200 Ceaner 600 $ 1.600 200 BOB ances The number of machine hours to produce one unt of Brighter is I. while the number of machine hours for each unit of Cleaner is 2 Total fixed costs for the manufacture of both products are $280,000 Required: 1. Determine the breakeven point in total units for Smith Company, based on the assumption that the sales mix fon the basis of relative sales volume in units) remains constant. Use the weighted-average contribution margin approach 2. At this breakeven level, how many units of each product must be sold? Due to rounding the total breakeven units for Requirement 2 may differ slightly than in Requirement 3. Using the Indirect approach, what is the overall breakeven point in sales dollars? Use the breakeven units computed in Requirement 1 Complete this question by entering your answers in the tabs below. may differ slightly than in Requirement 1. 3. Using the Indirect opproach, what is the overall breakeven point in sales dollars? Use the breakeven units computed in Requirement Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the breakeven point in total units for Smith Company, based on the assumption that the sales mix (on the basis of relative sales volume in units) remains constant. Use the weighted average contribution margin approach. (Enter Sales mix (based on units) as a whole percentage and round Weighted average CM per unit to two decimal places.) Brighter Cleaner Contribution marginunit Sales mix (based on units) 5 0.00 Weighted average CM per unit Totalfoxed costs to be recovered Total units to breakeven Required 2 > may differ slightly than in Requirement1 3. Using the Indirect approach, what is the overall breakeven point in sales dollars? Use the breakeven units computed in Requirement 1 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 At this breakeven level, how many units of each product must be sold? Due to rounding, the total breakeven units for Requirement 2 may differ slightly than in Requirement 1. Round your final answers to the nearest whole unit.) Brighter Cleaner Units to Breakeven (Required 1 Required 3 > Neque 3. Using the Indirect approach, what is the overall breakeven point in sales dollars? Use the breakeven units computed in Requirement 1 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Using the Indirect approach, what is the overall breakeven point in sales dollars? Use the breakeven units computed in Requirement 1. Do not round intermediate calculations. Round your final answer to the nearest whole dollar) Overall breakeven point in de donar

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_2

Step: 3

blur-text-image_3

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

Public Sector Accounting

Authors: Budding, Tjerk, Grossi, Giuseppe, Tagesson, Torbj

1st Edition

0415683149, 9780415683142

More Books

Students also viewed these Accounting questions

Question

4 How can employee involvement be achieved?

Answered: 1 week ago