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If you can show your work that would be greatly appreciated as I am learn how to approach this type of problem Bruno Mars Corporation
If you can show your work that would be greatly appreciated as I am learn how to approach this type of problem
Bruno Mars Corporation produces two products, chairs and microwaves. They are produced in separate divisions. Budgeted information regarding the products is summarized for the month of December in the following table: Chair Microwave Company Division Division Total Units 1,000 4,000 5,000 Sales revenue 50,000 320,000 370,000 Variable costs 20,000 200,000 220,000 Fixed costs 19,980 78,000 97,980 Operating income 10,020 42,000 52,020 Answer the following questions about the Chair Division, the Microwave Division and the company overall: 10. For the chair division, what is the contribution margin ratio? 11. For the chair division, what is the breakeven point in dollars? 12. For the Chair division, if the company produces and sells 10 more, by how much will profits increase? 13. For the Chair Division, how many units must they sell if they wish to make operating income of $12,000? units 14. For the Chair Division, by how many dollars could the division sales drop before they would show a loss? 15. Which division appears RISKIER, and WHY? 16. The total cost function (formula) for the Chair Division for a month would be expressed as: (use actual numbers) Estimated Total Cost = 17. For the chair division, if 10,000 units are predicted FOR THE YEAR, the estimated total cost would be: $ 18. For the Chair Division, say the company will sell the same number of units indicated in the chart above. They desire operating profit of $10,000 for a month. Fixed costs are estimated at $20,000. Unit variable costs will RISE by 20% What selling price is needed for the company to earn its desired profitStep by Step Solution
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