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please give the following answers: 1a. The basket contribution margin is __ dollars. 1b. The break-even number of packages is __ units. 1c. The break-even
please give the following answers: 1a. The basket contribution margin is __ dollars.
1b. The break-even number of packages is __ units.
1c. The break-even number of vases is __ units.
1d. The break-even number of figurines is __ units.
2a. With the new information provided, the basket contribution margin is __ dollars.
2b. The new break-even number of packages is __ units.
2c. The new break-even number of vases is __ units.
2d. The new break-even number of figurines is __ units.
OBJECTIVE O4 Multiple-Product Break-Even Exercise 4-26 Parker Pottery produces a line of vases and a line of ceramic figurines. Each line uses the same equipment and labour; hence, there are no traceable fixed costs. Common fixed costs equal $75,000. Parker's accountant has begun to assess the profitability of the two lines and has gathered the following data for last year: Price Variable cost Contribution margin Number of units Vases $100 75 S 25 1,000 Figurines $175 105 S 70 500 Required: 1. Compute the number of vases and the number of figurines that must be sold for the company 2. Parker Pottery is considering upgrading its factory to improve the quality of its products. The to break even. upgrade will add $13,150 per year to total fixed costs. If the upgrade is successful, the pro- jected sales of vases will be 1,500, and figurine sales will increase to 1,000 units. What is the new BEP in units for each of the products? CONCEPTUAL CONNECTION Why is it better to use the contribution margin ratio in de- termining break-even in a multi-product company? 3Step by Step Solution
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