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ive tried this problem five times and i can never get the check figure in the textbook. plz help!!! Problem 7-54 Multiple-Product Analysis, Changes in
ive tried this problem five times and i can never get the check figure in the textbook. plz help!!! Problem 7-54 Multiple-Product Analysis, Changes in Sales Mix, Sales to Earn Target Operating Income Objective 2,4 Baru Company produces two types of sleds for playing in the snow basic sled and aerosled. The projected income for the coming year, segmented by product line, follows: EXCEL Sales Total variable cose Contribution margin Direct fixed cost Product margin Common fined cost Operating income Basic Sled $3.000.000 1.000.000 $2.000.000 -8.000 51.222.000 Acrosted $2,400,000 1.000.000 S1.400.000 650.000 $ 50.000 Tocal $5.400.000 2.000.000 $3.000.000 1.428.000 $1972.000 198.900 51.773.100 The selling prices are $30 for the basic sled and $60 for the aerosled (Round break-even packages and break-even units to the nearest whole unit) Required: 1. Compute the number of units of each product that must be sold for Basu to break even. 2. Assume that the marketing manager changes the sales mix of the two products so that the ratio is five basic sleds to three aerosleds. Repeat Requirement 1. Answer Check Figure: Break-even basic sleds = 39,680 3. Conceptual Connection Refer to the original data. Suppose that Basu can increase the sales of aerosleds with increased advertising. The extra advertising would cost an additional $195,000, and some of the potential purchasers of basic sieds would switch to aerosleds. In total, sales of aerosleds would increase by 12,000 units, and sales of basic sleds would decrease by 5,000 units. Would Basu be better off with this strategy? Answer + Check Figure Increase in total contribution margin = 5320,000
ive tried this problem five times and i can never get the check figure in the textbook. plz help!!!
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