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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)

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedHi, 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 $ 156000

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