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Current Designs manufactures two different types of kayaks, rotomolded kayaks and composite kayaks. The following informatic available for each product line. The company's fixed costs
Current Designs manufactures two different types of kayaks, rotomolded kayaks and composite kayaks. The following informatic 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 u sold. (a) Your answer is correct. Determine the weighted-average unit contribution margin for Current Designts. Determine the weighted-average unit contribution margin for Current Designs: Weighted-average unit contribution margin eTextbook and Media Attempts: 1 of 3 u Using multiple attempts will impact your score. 10% score reduction after attempt 2 (b) Your answer is correct. 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 Assume that the sales mix changes, and rotomoldod 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 eTextbook and Media Attempts: 1 of 3 used Using multiple attempts will impact yourscore. 103 score reduction after attempt 2 (d) Assume that Current Designs will have sales of $3,600,000 with two-thirds of the sales dollirs in rotomolded kayaks and enethird of the sales dollars in composite kavaks. Assuming $766,000 of foxed 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 Current Designs will hawe 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. eTextbook and Media Attempts: of 3 used Using multiple attempts will impact your score. 10% scorereduction after attempt 2 Using meitiple attempts will impact your score. 100 score reduction after attempt 2 (e1) Calculate the degree of operating leverage for each product line. (Round onswers to 2 decimal ploces, eg 52.75)
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