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Exercise 6-6 (Video) Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows. Sales Mix 20 % Lawnmowers
Exercise 6-6 (Video) Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows. Sales Mix 20 % Lawnmowers Weed-trimmers Chainsaws Unit Contribution Margin $29 $25 $37 50 % 30 % Yard Tools has fixed costs of $4,321,800. Compute the number of units of each product that Yard Tools must sell in order to break even under this product mix. Lawnmowers units Weed-trimmers units Chainsaws units Click if you would like to Show Work for this question: Open Show Work Exercise 6-14 a1, b (Video) The CVP income statements shown below are available for Armstrong Company and Contador Company. Contador Armstrong Co. Co. $490,000 230,000 $490,000 45,000 Sales Variable costs Contribution margin Fixed costs 260,000 445,000 160,000 $100,000 345,000 $100,000 Net income (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage Armstrong Contador (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Armstrong Company Contador Company $ $ 2 $ $ Click if you would like to Show Work for this question: Open Show Work
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