Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help with the Multiproduct Target Profit Point and Sales revenue at Target Profit and Margin of Safety, Margin of Safey Percentage, and Operating Leverage
Please help with the Multiproduct Target Profit Point and Sales revenue at Target Profit and Margin of Safety, Margin of Safey Percentage, and Operating Leverage Factor, and lastly Expected % change in operating income (%). This can be solved with the data provided in the document. Launch-it $6 Launch-it $10 Jake's Pet Supplies Pro Forma Contribution Margin Income Statement For the month endine June 30 60.00% ASSUMPTIONS Product #1: Launch it sales price per unit Variable costs per unit Launch It Purchase Cost Shipping and handline Sales Commission Per Unit Total variable cost per unit Product Unit CM CM 95 Breakeven point: -in units in sales revenue 250.00 $2,500.00 $1 2 si $4 T Product #1 $2.000 $800 $1,200 Sales price Less: variable costs Contribution Margin Less: fixed costs Operating income Product #2 $3.000 $1.800 $1,200 Total 95.000 $2,600 $2,400 $1,500 $900 Target profit volume: -in units in sales revenue 1583.33 $15,833.33 Monthly volume 2001 WACM 48.00 Treat time Is 30 Treat time Product #2: Treat Time Sales price per unit Variable costs per unit Treat Time Purchase Costs Shipping and Handling Sales Commision Per Unit Total variable cost per unit $12.00 40.00% 57 $8 Product 2 Unit CM CM% Breakeven point: in units in sales revenue s 125.00 3750.00 Calculation of Weiehted averee CM per unit Product Product #2 $6 $12.00 200 100 1200.00 1200.00 CM/unit Sales mix (sold of each) Contribution margin $18 Total $18.00 300 2400.00 Monthly volume 100 Target profit volume: in units - in sales revenue WACM/unit $8.00 791.67 23750.00 Fixed costs per month: Work Contract Entry Fees Total fixed costs per month $1,000 $500 $1,500 Multiproduct Breakeven point - in units Sales revenue at breakeven Product #1 188 125 Product #2 188 63 Total 3 75 S188 Target profit per month $8,000 1200.00 5 Product 1 Contribution Margin Product 2 Contribution Margin Expected change in volume (%) 5% 1200.00 Product 31 Product #2 Total Multiproduct Target profit point -in units Sales revenue at target profit Margin of Safety (in 5) Margin of Safety % Operating Leverage Factor Expected change in operating income
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started