Answered step by step
Verified Expert Solution
Question
1 Approved Answer
e. What level of sales (in dollars) will be needed to earn a profit if $64950 assuming the current sales mix? f. What will be
e. What level of sales (in dollars) will be needed to earn a profit if $64950 assuming the current sales mix?
f. What will be the sales (in dollars) of Premium Caviar and Goose Foie Gras boxes for the business' total sales calculated in Part e?
Problem 2: Thomas' family also runs a gourmet food store that sells two main products: Premium Caviar and Goose Foie Gras. They import the Premium Caviar from Russia, and purchase Goose Foie Gras from Upstate New York. The two products are sold in boxes. Thomas gathers the following information: Premium Caviar Goose Foie Gras Totals Units 4.000 12.000 16.000 Revenue $100,000 $180,000 $280,000 Variable costs 56,000 105,000 161,000 Fixed costs 20.000 40.000 60,000 Profit S 24,000 $35.000 S59.000 Selling price per unit $25.00 Contribution margin per unit Profit margin per unit $6.00 $15.00 $11.00 $6.25 $2.92 When Thomas took accounting courses at college, he knows how to do cost-volume-profit analysis pretty well. However, he just remembers how to do the analysis for those companies with only one product. Therefore, he needs your help to calculate the following: a. What is the business' weighted average contribution margin per unit? (show your computation) b. Calculate the business' break-even point in units assuming the current sales mix. (show your computation) c. What will be the number of Premium Caviar and Goose Foie Gras boxes at the break-even level of sales? (show your computation) d. What is the business weighted average contribution margin ratio? (show your computation) e. What level of sales in dollars) will be needed to earn a profit of $64,950 assuming the current sales mix? (show your computation) What will be the sales (in dollars) of Premium Caviar and Goose Foie Gras boxes for the business' total sales calculated in Part e? (show your computation)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started