Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me between C, d and E1!!! Current Designs manufactures two different types of kayaks, rotomolded kayaks and composite kayaks. The following information is

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
image text in transcribed
please help me between C, d and E1!!!
image text in transcribed
image text in transcribed
image text in transcribed
Current Designs manufactures two different types of kayaks, rotomolded kayaks and composite kayaks. The following information is available for each product line. The company's fixed costs are $836,200. An analysis of the sales mix identifies that rotomolded kayaks make up 80% of the total units sold. Assume that the sales mix changes, and rotomolded kayaks now make up 70% of total units sold. Calculate the total number of units that would need to be sold to earn a net income of $2,036,580 and identify how many units of each type of kayak will be sold at this level of income. Required sales units Assume that Current Designs will have sales of $3,000,000 with two-thirds of the sales dollars in rotomolded kayaks and onethird of the sales dollars in composite kayaks. Assuming $673,000 of fixed costs are allocated to the rotomolded kayaks and $163,200 to the composite kayaks, prepare a CVP income statement for each product line. Calculate the degree of operating leverage for each product line, (Round answers to 2 decimal places, e.g. 52.75.)

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

Advanced Accounting

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik

11th edition

78025400, 978-0078025402

More Books

Students also viewed these Accounting questions