Cost$-$Volume$-$Profit with Multiple Products, Sales Mix Changes, Changes in Fixed and Variable Costs Cost$-$Volume$-$Profit with Multiple Products, Sales Mix Changes, Changes in Fixed and Variable Costs

Common fixed costs $($fixed costs not traceable to either cabinet$)$ are $$35,000.$ Currently, for every three Grade I cabinets sold, seven Grade II cabinets are sold.

Required:

Note: Round your answers to the nearest whole number.

Calculate the number of Grade I and Grade II cabinets that are expected to be sold during the current year.

Grade I

$$ units

Grade II

$|$ units

Calculate the number of Grade I and Grade II cabinets that must be sold for Artistic to break even.

Grade I

$$ units

Grade II

$$ units

Compute the effect on operating income.

$$

Calculate the new break$-$even point. Assume the machines are purchased at the beginning of the sixth month. Fixed costs for the company are incurred uniformly throughout the year.

Grade I

$x$ units

Grade II

$x$ units

Common fixed costs $($fixed costs not traceable to either cabinet$)$ are $$35,000.$ Currently, for every three Grade I cabinets sold, seven Grade II cabinets are sold.

Required:

Note: Round your answers to the nearest whole number.

Calculate the number of Grade I and Grade II cabinets that are expected to be sold during the current year.

Grade I

$$ units

Grade II

$$ units

Calculate the number of Grade I and Grade II cabinets that must be sold for Artistic to break even.

Grade I

$$ units

Grade II

$$ units

Compute the effect on operating income.

Calculate the new break$-$even point. Assume the machines are purchased at the beginning of the sixth month. Fixed costs for the company are incurred uniformly throughout the year.

Grade I

$x$ units

Grade II

$x$ unitsChapter $07$ Homework

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Grade I

$224$

units

Grade II

$$ units

Calculate the number of Grade I and Grade II cabinets that must be sold for Artistic to break even.

Grade I

$$ units

Grade II

$$ units

Compute the effect on operating income.

$x$

Increase

$$

Calculate the new break$-$even point. Assume the machines are purchased at the beginning of the sixth month. Fixed costs for the company are incurred uniformly throughout the year.

Grade I

$x$ units

Grade II

$x$ units

retail outlet is also expected to increase sales by $30\%.$ Assume that the outlet is opened at the beginning of the sixth month.

Calculate the effect on the company's expected profits for the current year.

Calculate the new break$-$even point. Assume that fixed costs are incurred uniformly throughout the year.

Grade I

$x$ units

Grade II

$x$ units

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T Check My Work

Let $x$ be a package of $3$ Grade I cabinets and $7$ Grade II cabinets. Set up an equation for total sales equal to $)$ for Grade I and $)$ for Grade II$.$

Prepare a contribution margin income statement using the new numbers.

Re$-$do Requirement $(2)$ with the changed numbers.