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need help Blackcat Hoverboards Jinx Toy Company manufactures and markets several products. Management is considering the future of one of its products, the Blackcat Hoverboard,
need help Blackcat Hoverboards Jinx Toy Company manufactures and markets several products. Management is considering the future of one of its products, the Blackcat Hoverboard, which has not been as profitable as planned. Since this product is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year's plans call for a $350 selling price per unit. The fixed costs for the year are expected to be $42,000, up to a maximum capacity of 700 units. Forecasted variable costs are $210 per unit. Required: 1. Estimate the break-even point in terms of (a) sales units and (b) sales dollars for the Blackcat Hoverboard. Prepare a CVP chart for hoverboards. Use 700 hoverboards as the maximum number of sales units on the horizontal axis of the graph, and $250,000 as the maximum dollar amount on the vertical axis. Label the break-even point, the sales line, the total costs line, fixed cost line, profit area, and loss area Prepare a contribution margin income showing sales, variable costs, and fixed costs for hoverboards at the break-even point. 2. 3. Estimate (a) the number of sales units and (b) the sales dollars needed in order to achieve a S10,000 profit. 4
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