Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Over Oven makes and sells two models of stoves for home use: economy and deluxe. While the economy model is very basic, the deluxe version

Over Oven makes and sells two models of stoves for home use: economy and deluxe. While the economy model is very basic, the deluxe version has many special features. The company incurs fixed costs of $38,000 per month. Its planned sales mix in units is 34% economy and 66% deluxe. The following table indicates the selling price and variable costs for each option.

Economy Deluxe
Selling Price $490 $970
Variable Cost $210 $360

Do not enter dollar signs or commas in the input boxes. Round the weighted average contribution margin to 2 decimal places. Round all other answers up to the nearest whole number. Calculate the contribution margins and break-even points, assuming the planned sales mix is maintained. Contribution Margin economy: Answer Contribution Margin deluxe: Answer Weighted Average Contribution Margin: Answer Break-even point (total): Answer Break-even point economy: Answer Break-even point deluxe: Answer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting for Governmental and Nonprofit Entities

Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus

16th Edition

78110939, 978-0078110931

More Books

Students also viewed these Accounting questions

Question

Why do you think most employers opt for the home-based salary plan?

Answered: 1 week ago