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Hi, all of the questions are answered correctly before the last one. Please just answer the last question. Thanks. Decision Making 6-1 (Part Level Submission)
Hi, all of the questions are answered correctly before the last one. Please just answer the last question. Thanks.
Decision Making 6-1 (Part Level Submission) Current Designs manufactures two different types of kayaks, rotomoulded kayaks and composite kayaks. The following information is available for each product line. Sales price/unit Variable costs/unit Rotomoulded Composite $840 $1,760 $500 $1,180 The company's fixed costs are $722,000. An analysis of the sales mix identifies that rotomoulded kayaks make up 80% of the total units sold. Your answer is correct. Determine the weighted-average unit contribution margin for Current Designs. Weighted average unit contribution margin 388 Your answer is correct. Determine the break-even point in units for Current Designs and identify how many units of each type of kayak will be sold at the break-even point. (Round answers to 0 decimal places, e.g. 5,275.) Break-even Sales 1861 units Rotomolded Kayaks Composite Kayaks Break-even Sales Distribution 1489 units 372 units Your answer is correct. Assume that the sales mix changes, and rotomoulded 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 $1.76 million and identify how many units of each type of kayak will be sold at this level of income. (Round answers to 0 decimal places, e.g. 5,275.) Required Sales 6024 units Rotomolded Kayaks Composite Kayaks Break-even Sales Distribution 4217 units 1807 units Assume that Current Designs will have sales of $2.70 million with two-thirds of the sales dollars in rotomoulded kayaks and one third of the sales dollars in composite kayaks. Assuming $581,000 of fixed costs are allocated to the rotomoulded kayaks and $141,000 to the composite kayaks, prepare a CVP income statement for each product line. (Round answers to 0 decimal places, e.g. 5,275.) Rotomolded Kayaks Composite Kayaks Sales $ 1800000 $ 900000 Variable Costs -1080000 -603000 Contribution Margin 720000 297000 Fixed Costs -581000 -141000 Net Income / (Loss) $ 139000 $ 156000Step by Step Solution
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