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Multiple - Product Break - even, Break - Even Sales Revenue Andrews Sporting Goods, Inc., produces and sells children's softball mitts: vinyl mitts and basic
MultipleProduct Breakeven, BreakEven Sales Revenue
Andrews Sporting Goods, Inc., produces and sells children's softball mitts: vinyl mitts and basic leather mitts. Last year, Andrews sold vinyl mitts and leather mitts. Information on the two products is as follows:
Line Item Description Vinyl Mitts Leather Mitts
Price $ $
Variable cost per unit
Total fixed cost is $
Suppose that in the coming year, the company plans to produce an autographed mitt. The company estimates that autographed mitts can be sold at a price of $ and a variable cost per unit of $ Total fixed cost must be increased by $making total fixed cost $ Assume that anticipated sales of the other products, as well as their prices and variable costs, remain the same.
Unless otherwise instructed, round all total dollar figures eg sales, total contribution margin to the nearest dollar, breakeven or target units to the nearest unit, and unit costs and unit contribution margins to the nearest cent. Round ratios to four significant digits.
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Question Content Area
What is the sales mix of vinyl mitts, leather mitts, and autographed mitts?
::
Compute the breakeven quantity of each product. Round breakeven packages to four significant digits and breakeven units to the nearest whole unit.
Line Item Description Answer
BreakEven Vinyl Mitts fill in the blank of
units
BreakEven Leather Mitts fill in the blank of
units
BreakEven Autographed Mitts fill in the blank of
units
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Feedback
See text section "Determining the Sales Mix."
Question Content Area
a Prepare an income statement for Andrews Sporting Goods, Inc. for the coming year.
Andrews Sporting Goods Inc.
Income Statement
For the Coming Year
Line Item Description Amount
Sales
$Sales
Total variable cost
Total variable cost
Contribution margin
$Contribution margin
Total fixed cost
Total fixed cost
Operating income
$Operating income
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Feedback
a Prepare contribution margin income statement.
Question Content Area
b What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall breakeven sales revenue. Note: Round the contribution margin ratio to two decimal places; round the breakeven sales revenue to the nearest dollar.
Line Item Description Answer
Overall contribution margin ratio fill in the blank of
Overall breakeven sales revenue fill in the blank of $
Compute the margin of safety for the coming year in sales dollars.
fill in the blank of $
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