Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Home Electrical Products Inc. produces and sells two lines of coffee makers with the follow- ng results based on the production and sale of 5,000

image text in transcribed
Home Electrical Products Inc. produces and sells two lines of coffee makers with the follow- ng results based on the production and sale of 5,000 units of each Browmaster Brewmaster Delete Sales $300.000 $450,000 Cost of goods sold: Direct materials 72,000 108,000 Direct labour 60,000 70.000 Variable overhead 20.000 24.000 Fixed overhead 48.000 Total cost of goods sold. 200.000 280.000 Gross margin 100,000 170.000 Fixed selling and auministrative. 60.000 90.000 Operating income $ 40,000 $ 80,000 78,000 Required Calculate the contribution margin per unit for each of the product lines. What is their Weighted average contribution margin? What is the company's breakeven point with its current sales mix? What is the company's margin of safety (in units)? How many units of each product line would the company have to product and sell it it decided to change the sales mix to a 2:1 ratio (Brewmaster Brewmaster Deluxe) and it it desired operating income of $240,000 mily Shoeid, isegning a store in Red Alberta Fixed monthly expens antrent amortization of store fixtures se utilities (1401. a business telephon line 25 connection with computerized Inventory and the salary a store manager 2500 Variable de merchandi (20 punt af sama incentive peruation for the employee cent of sales and advertising il percent of ole), equired Use the contribution approach Family Shobanale

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

Auditing And Society Research On Audit Practice And Regulations

Authors: Wally Smieliauskas, Minlei Ye, Ping Zhang

1st Edition

1138314129, 978-1138314122

More Books

Students also viewed these Accounting questions