Answered step by step
Verified Expert Solution
Question
1 Approved Answer
MULTIPLE PRODUCT BREAK-EVEN: 4. A student pop up shop on campus is selling two products that are extremely popular. One is a pen case
MULTIPLE PRODUCT BREAK-EVEN: 4. A student pop up shop on campus is selling two products that are extremely popular. One is a pen case that doubles as a koozie and the other is a pen that doubles as a beer can opener. The pen case costs S.25 to make and sells for $1.25. The pen costs S.35 to make and sells for $2.25. Logos for each product are S.10 each. Fabricating equipment is rented at $35/month. The pen case is more popular, representing 70% of total sales. What percent of sales do the pen cases represent? What is the weighted average contribution margin? How many products do they need to sell to break even? What revenue level to they need to reach to break even? We make office chairs of two primary types: : Sells for $150 : Sells for $200 (deluxe model) VC: S100 VC: S100 Direct labor is the same for each as they are assembled on the same assembly line-about S10/chair. While Type B is more profitable, it only accounts for 20% of my sales. My fixed overhead runs about S600. What is break-even in units for each chair? What is break-even in revenues? 5.
Step by Step Solution
★★★★★
3.40 Rating (144 Votes )
There are 3 Steps involved in it
Step: 1
4 a Here pen case represent 70 of Sales b Here Selling price of pen case is 125 per unit Variable co...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started