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Current Designs manufactures two different types of kayaks, rotomolded kayaks and composite kayaks. The following information is available for each product line. Rotomolded Composite Sales
Current Designs manufactures two different types of kayaks, rotomolded kayaks and composite kayaks. The following information is available for each product line. Rotomolded Composite Sales price/unit $900 $2,000 Variable costs/unit $540 $1,340 The company's fixed costs are $756,000. An analysis of the sales mix identifies that rotomolded kayaks make up 80% of the total units sold. (a) Determine the weighted-average unit contribution margin for Current Designs. Weighted-average unit contribution margin $ 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 Rotomolded Kayaks Composite Kayaks Break-even sales distribution units eTextbook and Media Assistance Used 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 $1.960.800 and identify how many units of each type of kayak will be sold at this level of income Required sales units Rotomolded Kayaks Regresales distribution Composite Kayaks s units Assume that Current Designs will have sales of $3,000,000 with two-thirds of the sales dollars in rotomolded kayaks and one- third of the sales dollars in composite kayaks, Assuming $447,000 of fixed costs are allocated to the rotomolded kayaks and $155,200 to the composite kayaks, prepare a CVP income statement for each product line Rotomolded Kayaks Composite Kayaks Calculate the degree of operating leverage for each product line. (Round answers to 2 decimal places, eg 52.75) Rotomolded Kayaks Composite Kayaks Degree of operating leverage 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 Rotomolded Kayaks Composite Kayaks Break-even sales distribution units units eTextbook and Media Assistance Used 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 $1.960,800 and identify how many units of each type of kayak will be sold at this level of income. Required sales unity Rotomolded Kayaks Required sales distribution Composite Kayaks onits units Assume that Current Designs will have sales of $3,000,000 with two-thirds of the sales dollars in rotomolded kayaks and one- third of the sales dollars in composite kayaks. Assuming $647.000 of fixed costs are allocated to the rotomolded kayaks and $155,200 to the composite kayaks, prepare a CVP income statement for each product line. Rotomolded Kayaks Composite Kayaks $ Calculate the degree of operating leverage for each product line. (Round answers to 2 decimal places, eg. 52.75) Rotomolded Kayaks Degree of operating leverage Composite Kayaks
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