Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please and thank you 54. CVP Analysis and Sales Mix (Multiple Products). Math Products, Inc., produces two different products with the following monthly data (this

image text in transcribed

image text in transcribedimage text in transcribed

Please and thank you

54. CVP Analysis and Sales Mix (Multiple Products). Math Products, Inc., produces two different products with the following monthly data (this is the base case) Finance CalculatorSolar Calculator Total elling price per unit Variable cost per unit Expected unit sales Sales mix Fixed costs Assume the sales mix remains the same at all levels of sales except for requirement i. Required: Round to the nearest unit of product, hundredth of a percent, and nearest cent where appropriate. (An example for unit calculations is 3,231.15-3,231; an example for percentage calculations is o.434532 0.4345 43-45 percent; an example for dollar calculations is $378.9787-$378.98.) a. Calculate the weighted average contribution margin per unit. b. S12 S100 S 60 21,000 14,000 35,000 100 percent $750,000o 60 percent 40 percent 1. How many units in total must be sold to break even? 2. How many units of each product must be sold to break even? 1. How many units in total must be sold to earn a monthly profit of $100,ooo? 2. How many units of each product must be sold to earn a monthly profit of S100,000? d. Using the base case information, prepare a contribution margin income statement for the month similar to the one in Figure 6.5 "Income Statement for Amy's Accounting Service". e. Calculate the weighted average contribution margin ratio. f. Find the break-even point in sales dollars g. What amount of sales dollars is required to earn a monthly profit of $8o,0oo? h. Assume the contribution margin income statement prepared in requirement d is the company's base case. What is the margin of safety in sales dollars? i. If the sales mix shifts more toward the Finance Calculator product than the Solar Calculator product, would the break- even point in units increase or decrease? Explain. (Detail calculations are not necessary, but may be helpful in confirming your 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

Quality Audits For Improved Performance

Authors: Dennis R. Arter

2nd Edition

0873892631, 978-0873892636

Students also viewed these Accounting questions