CVP Home Run Practice: Three Product

The SHIM$$s Fancy Company sells three different belts: Gold,

Silver and Leather. Dan Shim foresees sales of $200,000$ units

in the coming period, consisting of $20,000$ units of Gold,

$100,000$ units of Silver and $80,000$ units of Leather. The

company's common fixed costs for the period are $$2,550,000$

which can$$t be separated to any belt. The following are

additional information: CVP Home Run Practice: Three Product

Example:

The SHIM$$s Fancy Company sells $3$ different belts: Gold,

Silver and Leather. Dan Shim foresees sales of $200,000$ units

in the coming period, consisting of $20,000$ units of Gold,

$100,000$ units of Silver and $80,000$ units of Leather. The

company's common fixed costs for the period are $$2,550,000$

which can$$t be separated to any belt. The followings are

additional information:

Based $20,000$ units of Gold, $100,000$ units of Silver and $80,000$ units of Leather and the chart of data, I need to fill out the rest of the chart, basically I need, $1)$ What is the sales mix and unit contribution margin for

each product?

$2)$ Prepare contribution margin income statement. What

is Shim$$s total contribution margin and operating

income?

$3)$ What is Shim$$s breakeven in units and in Sales

dollars?

$4)$ If Shim wants to make $$7,650,000,$ how many units of

each product must be sold and how much sales dollars

should be generated for each product?

$5)$ If Shim wants to make $$15,000,000$ income after taxes

when tax rate is $25\%,$ how many units of each product

must be sold and how much sales dollars should be

generated for each product?

The answers for all these questions are to fill the chart I will share