Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i posted a screenshot of the question since i cant post the table here. ( i dont know how, sorry, on my phone) there is

i posted a screenshot of the question since i cant post the table here. ( i dont know how, sorry, on my phone)
there is a second screenshot attached because thats the rest of the question. there a few parts to this question.
image text in transcribed
image text in transcribed
Abilene Industries manufactures and sells three products (XX, YY, and ZZ). The sales price and unit variable cost for the three products are as follows:
image text in transcribed
Their sales mix is reflected as a ratio of 4:2:1. Annual fixed costs shared by the three products are $345,000 per year.
A. What are total variable costs for Abilene with their current product mix?
B. Calculate the number of units of each product that will need to be sold in order for Abilene to break even.
C. What is their break-even point in sales dollars?
D. Using an income statement format, prove that this is the break-even point.
Solution
A. Total Variable Costs: $----------------
B. Units to Break Even:
image text in transcribed
C. Break Even: $___________________
See the following spreadsheet for detailed solution.
image text in transcribed
PB7. LO 3.4 Abilene Industries manufactures and sells three products (XX, YY, and ZZ). The sales price and unit variable cost for the three products are as follows: Sales Price Variable Cost Product per Unit per Unit $75 XX W $45 60 ZZ 55 Their sales mix is reflected as a ratio of 4:2:1. Annual fixed costs shared by the three products are $345,000 per year. A. What are total variable costs for Abilene with their current product mix? B. Calculate the number of units of each product that will need to be sold in order for Abilene to break even. C. What is their break-even point in sales dollars? D. Using an income statement format, prove that this is the break-even point. Solution A. Total Variable Costs: $--- B. Units to Break Even: Number of units per product XX YY ZZ c. Break Even: $ See the following spreadsheet for detailed solution. D. Using an income statement format, prove that this is the break-even point. Solution A Total Variable Costs: $............. B. Units to Break Even: Number of units per product c. Break Even: $ See the following spreadsheet for detailed solution. Sales Price Variable Cast per per Unit Unit Contrato Margie per YY Composite Unit Sales Price Variable Cest Contributie M argin Break even per composite unit- Number of Number of units per product XX break-even units * -units per composite IYY break even units units per composite 22. break-even units * unit per composite Sales Sale Price Unit Sales Total Sales Product XX 6,000 m x 575 Product YY 3.000 units $60 Product ZZ 1,500 units 555 Total Sales Variable Costs Units Total Variable costs Product XX 6.000 units $45 Product YY 1.000 units $25 Product ZZ 1.500 units X S15 Total Variable Costs Contributie marin Fixed costs Net income D. Using an income statement format, prove that this is the break-even point. Solution A Total Variable Costs: $............. B. Units to Break Even: Number of units per product c. Break Even: $ See the following spreadsheet for detailed solution. Sales Price Variable Cast per per Unit Unit Contrato Margie per YY Composite Unit Sales Price Variable Cest Contributie M argin Break even per composite unit- Number of Number of units per product XX break-even units * -units per composite IYY break even units units per composite 22. break-even units * unit per composite Sales Sale Price Unit Sales Total Sales Product XX 6,000 m x 575 Product YY 3.000 units $60 Product ZZ 1,500 units 555 Total Sales Variable Costs Units Total Variable costs Product XX 6.000 units $45 Product YY 1.000 units $25 Product ZZ 1.500 units X S15 Total Variable Costs Contributie marin Fixed costs Net income Solution A. Total Variable Costs: $---- B. Units to Break Even: Number of units per product XX YY zz c. Break Even: $ See the following spreadsheet for detailed solution. B. Units to Break Even: Number of units per product xx zz c. Break Even: S See the following spreadsheet for detailed solution. Contribution Sales Price Variable Cost per Margin per per Unit Unit Ratio Product Composite Unit Sales Price Variable Cost Contribution Margin Break even per composite unit Number of units per product Ratio Number of units per product XX- break-even units X ---units per composite YY break-even units units per composite 27 break-even units unit per composite Sale Price Unit Sales Total Sales Sales Product XX 6,000 units X $75 Product YY 3,000 units * 560 Product ZZ 1.500 units * $55 Total Sales Variable Costs Units Total Variable costs Product XX 6,000 units X $45 Product YY 3,000 units X $25 Product ZZ 1.500 units X SIS Total Variable Costs Contribution margin Fixed costs Net income

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

More Books

Students also viewed these Accounting questions

Question

2. What are the components of IT infrastructure?

Answered: 1 week ago