Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me!!!! MOBLEM 5-23 Sales Mix; Break-Even Analysis; Margin of Safety (L07L09 Na Milena SA, a company located in Toledo, Spain, manufactures and sells

please help me!!!!
image text in transcribed
image text in transcribed
MOBLEM 5-23 Sales Mix; Break-Even Analysis; Margin of Safety (L07L09 Na Milena SA, a company located in Toledo, Spain, manufactures and sells models of anon below. All currency amounts are stated in terms of cars, which are indicated by the bol Alvaro Selling price por unit Variable expenses per unit Number of units sold monthly 4,00 2.40 200 units Bazar 5.00 1:20 80 units Fred expenses are 660 per month Recured Asuming the sales mix above, do the following: Prepare a contribution format income statement showing both euro and percent columns for each product and for the company as a whole. Compute the break-even point in euros for the company as a whole and the margin of safety in both euros and percent of sales. . The company has developed another product. Cano, that the company plans to sell for es cach. At this price, the company expects to sell 40 units per month of the product. The variable expense would be 6 per unit. The company's fixed expenses would not change 14 Multiproduct Break-Even Analysis (L09] Bases is the distributor for two products, Model A100 and Model 1900. Moly bation margin ratios for the two products follow Product Model A100 Model B900 Total $700,000 60% $300,000 70% $1,000,000 2 Sales Contribution margin ratio the trapy's fixed expenses total $598,500 per month. Prepare a contribution format income statement for the company as a whole. Compute the break-even point for the company based on the current sales mix. Psales increase by $50,000 per month, by how much would you expect net operating income increase? What are your assumptions

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

Managerial Accounting

Authors: Susan V. Crosson, Belverd E. Needles

8th Edition

9780618777174, 618777180, 618777172, 978-0618777181

More Books

Students also viewed these Accounting questions

Question

Who will manage the project and liaise with the external providers?

Answered: 1 week ago

Question

How will we measure their success and effectiveness?

Answered: 1 week ago