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Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Selling Price Variable Cost Product per Unit per Unit Snowboards $330 $180 Skis $380 $210 Poles $50 $20 Their sales mix is reflected in the ratio 6:4:1. If annual fixed costs shared by the three products are $177,100. Determine the break- even point in sales dollars. Break-even point 30 X Marshall & Company produces a single product and recently calculated their break-even point as shown below. Current Units Sold 400 Sales Price per Unit $515 $385 Variable Cost per Unit Contribution Margin per Unit $130 Fixed Costs $2,600 Break-Even (in units) 20 Contribution Margin Ratio 25% Break-Even (in dollars) $10,300 What would Marshall's target margin of safety point be in units and dollars if they required a $12,350 margin of safety? Target margin of safety 1,610 X units Feedback Chart MAM Work Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows: Sales Price Variable Cost Product per Unit per Unit $45 $30 BB 45 10 CC 35 15 Their sales mix is reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $198,000 per year. A. What are total variable costs for Morris with their current product mix? Total variable costs $ B. Calculate the number of units of each product that will need to be sold in order for Morris to break even Number of Units per Product AA BB CC C. What is their break-even point in sales dollars? Break-even point in sales | C. What is their break-even point in sales dollars? Break-even point in sales s D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0" Income Statement Sales Product AA Product BB Product CC Total Sales Variable Costs Product AA Product BB Product CC Total Variable Costs Contribution Margin Fixed Costs Net Income Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows: Sales Price Variable Cost Product per Unit per Unit $45 $30 AA BB 45. 10 CC 35 15 Their sales mix is reflected as a ratio of 5:32. Annual fixed costs shared by the three products are $198,000 per year. A. What are total variable costs for Morris with their current product mix? Total variable costs B. Calculate the number of units of each product that will need to be sold in order for Morris to break even. Number of Units per Product AA BB C. What is their break-even point in sales dollars? Break-even point in sales C. What is their break-even point in sales dollars? Break-even point in sales D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "O". Income Statement Sales Product AA Product BB Product CC buri Total Sales Variable Costs Product AA Product BB Product CC Total Variable Costs $ Contribution Margin Fixed Costs 10 Net Income
