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hi this is all parts to one question Piedmont Fasteners Corporation makes three different clothing fasteners in its manufacturing facility in North Carolina. All three
hi this is all parts to one question
Piedmont Fasteners Corporation makes three different clothing fasteners in its manufacturing facility in North Carolina. All three products are sold in highly competitive markets, so the company is unable to raise prices without losing an unacceptable number of customers. Data from the most recent period concerning these products appear below. Velcro Metal Nylon Annual sales volume 103,800 207,600 415,200 Unit selling price $ 1.65 $ 1.50 $ 0.85 Variable expense per unit $ 1.25 $ 0.70 $ 0.25 Contribution margin per unit $ 0.40 $ 0.80 $ 0.60 Total fixed expenses are $412,000 per period. Of the total fixed expenses, $20,000 could be avoided if the Velcro product is dropped, $80,000 if the Metal product is dropped, and $60,000 if the Nylon product is dropped. The remaining fixed expenses of $252,000 consist of common fixed expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely The company's managers would like to compute the break-even point in dollar sales for the company as a whole, and the break-even point in unit sales for each product. They are considering two methods for computing each product's break-even point unit sales: Method #f. Include each product's traceable fixed costs and an allocated share of the common fixed costs in the numerator of each break-even calculation. The common fixed costs would be allocated to the three products using sales dollars as the allocation base, Method #2 Only include each product's traceable fixed costs in the numerator of each break-even calculation. Required: 1. Using data from the most recent period, prepare a contribution format segmented income statement 2. What is the company's over-all break-even point in dollar sales? 3a. Calculate the break-even point in unit sales for each product using method 1. 3b, if the company sells exactly the break-even quantity of each product, what will be the overall profit for the company using method 12 4a. Calculate the break-even point in unit sales for each product using method 2. 4b. If the company sells exactly the break-even quantity of each product, what will be the overall profit for the company using method 22 5. Which method should the company use to calculate each product's break-even point in unit sales? Complete this question by entering your answers in the tabs below. Reg 2 Reg 1 Req 3a and 3b Req 4a and 4b Reg 5 Using data from the most recent period, prepare a contribution format segmented income statement. Piedmont Fasteners Corporation Contribution Format Income Statement Velcro Metal Nylon Total $ $ 0 0 0 0 0 0 0 0 0 $ 0 0 Req2 > 4a. 4b. If the company sells exactly the break-even quantity of each product, what will be 2? 5. Which method should the company use to calculate each product's break-even point in unit sales? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3a and 3b Req 4a and 4b Reg 5 What is the company's over-all break-even point in dollar sales? (Round your intermediate calculations to 4 decimal places and final answer to the nearest whole number.) Overall break-even point Complete this question by entering your answers in the tabs below. Reg 1 Reg 5 Reg2 Req 3a and 36 Req 4a Sud 46 3a. Calculate the break-even point in unit sales for each product using method 1. (Do not round Intermediate calculations and final answers to the nearest whole number.) 3b. If the company sells exactly the break-even quantity of each product what will be the overall profit for the company using method 17 Show less 3. Velcro's Break-even point in units Sa. Metal's Break-even point in units Sa. Nylon's Break-even point in units 3. Overall proft (14) 4a. eBook 46. If the company sells exactly the break-even quan 2? 5. Which method should the company use to calculate each product's break-even point in unit sales? Complete this question by entering your answers in the tabs below. Reg 5 Req1 Reg 2 Reg 3a and 3 Reg 4a and 40 4a. Calculate the break-even point in unit sales for each product using method 2. 46. If the company sells exactly the break-even quantity of each product what will be the overall profit for the company usi method 2? 4a. Velcro's Break-even point in units 4a. Metal's Break-even point in nits 4a. Nylon's Break-even point in units 45. Overall profit (loss) MC Graw TH 4a. 4b. If the company sells exactly the break-even quantity of each product, what will be 2? 5. Which method should the company use to calculate each product's break-even point in unit sales? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3a and 3b Req 4a and 4b Reg 5 What is the company's over-all break-even point in dollar sales? (Round your intermediate calculations to 4 decimal places and final answer to the nearest whole number.) Overall break-even point Complete this question by entering your answers in the tabs below. Reg 1 Reg 5 Reg2 Req 3a and 36 Req 4a Sud 46 3a. Calculate the break-even point in unit sales for each product using method 1. (Do not round Intermediate calculations and final answers to the nearest whole number.) 3b. If the company sells exactly the break-even quantity of each product what will be the overall profit for the company using method 17 Show less 3. Velcro's Break-even point in units Sa. Metal's Break-even point in units Sa. Nylon's Break-even point in units 3. Overall proft (14) 4a. eBook 46. If the company sells exactly the break-even quan 2? 5. Which method should the company use to calculate each product's break-even point in unit sales? Complete this question by entering your answers in the tabs below. Reg 5 Req1 Reg 2 Reg 3a and 3 Reg 4a and 40 4a. Calculate the break-even point in unit sales for each product using method 2. 46. If the company sells exactly the break-even quantity of each product what will be the overall profit for the company usi method 2? 4a. Velcro's Break-even point in units 4a. Metal's Break-even point in nits 4a. Nylon's Break-even point in units 45. Overall profit (loss) MC Graw TH Step by Step Solution
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