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Hi, i'm in managerial accounting and decision making, I need help with my week 2 homework #2. Thank you! Week Two: Managing costs and calculating
Hi, i'm in managerial accounting and decision making, I need help with my week 2 homework #2.
Thank you!
Week Two: Managing costs and calculating Breakeven Exercise #1 Sunshine, Inc. sells a single product. The company's most recent income statement is given below. Sales (4,000 units) $120,000 Less variable expenses (68,000) Contribution margin 52,000 Less fixed expenses (40,000) Net income $ 12,000 Answer each of the following questions and show all work: a. Contribution margin per unit is: b. If sales are doubled to $240,000, total variable costs will equal: c. If sales are doubled to $240,000, total fixed costs will equal: d. If Sunshine is past the breakeven point and 10 more units are sold, profits will increase by: e. Calculate how many units must be sold to break even: Exercise #2 Yurus Manufacturing Company produces two products, X and Y. The following information is presented for both products: Product X Product Y Selling price per unit $36 $24 Variable cost per unit 28 12 Total fixed costs $234,000 Answer each of the following questions and show all work: Assume the sales mix is 3 units of X for every unit of Y: a. What is the weighted revenue per unit of composite average product? b. What is the weighted average variable cost? c. What is the weighted contribution margin per unit of composite average product? d. What is the break-even point in units of product X? e. What is the break-even point in units of product YStep by Step Solution
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