Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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!

image text in transcribed 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 Y

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Financial Accounting

Authors: Kermit Larson, John Wild

20th Edition

77338235, 978-0077619442

More Books

Students also viewed these Accounting questions

Question

Describe the accountants role in decision making.

Answered: 1 week ago

Question

How will you establish groups?

Answered: 1 week ago

Question

Food supply

Answered: 1 week ago

Question

Mortality rate

Answered: 1 week ago