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Current Attempt in Progress Current Designs manufactures two different types of kayaks, rotomolded kayaks and composite kayaks. The following information is available for each product
Current Attempt in Progress Current Designs manufactures two different types of kayaks, rotomolded kayaks and composite kayaks. The following information is available for each product line. The company's fixed costs are $953,480. An analysis of the sales mix identifies that rotomolded kayaks make up 80% of the total units sold. Assume that Current Designs will have sales of $3,600,000 with two-thirds of the sales dollars in rotomolded kayaks and onethird of the sales dollars in composite kayaks. Assuming $766,000 of fixed costs are allocated to the rotomolded kayaks and $187,480 to the composite kayaks, prepare a CVP income statement for each product line. Assume that the sales mix changes, and rotomolded kayaks now make up 70% of total units sold. Calculate the total number of units that would need to be sold to earn a net income of $2,320,340 and identify how many units of each type of kayak will be sold at this level of income. Required sales units Determine the break-even point in sales units for Current Designs and identify how many units of each type of kayak will be sold at the break-even point. Break-even sales units Calculate the degree of operating leverage for each product line. (Round answers to 2 decimal places, e.g. 52.75.) Determine the weighted-average unit contribution margin for Current Designs. Weighted-average unit contribution margin $
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