Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please need done in next 4 hours Saved KM Case Study #1 [LO 6-5, LO 6-9) Susan Lo picked up the phone and called her

please need done in next 4 hours image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Saved KM Case Study #1 [LO 6-5, LO 6-9) Susan Lo picked up the phone and called her boss, Phil Takata, the vice president of marketing at Jewel Clasps Corporation: "Phil, I'm not sure how to go about answering the questions that came up at the meeting with the president yesterday" "What's the problem? "The president wanted to know the break even point for each of the company's products, but I am having trouble figuring them out "I'm sure you can handle it. Susan And, by the way, I need your analysis on my desk tomorrow morning at 8:00 sharp in time for the follow-up meeting at 9.00." Jewel Clasps Corporation makes three different types of jewelry clasps in its manufacturing facility in North Carolina. Data concerning these products appear below: Annual sales volume Unit selling price Variable expense per unit Gold 108,000 51.80 $0.90 Silver 200,000 $1.30 50.60 Copper 299,000 $1.30 $1.10 Total fixed expenses are $255,000 per year. All three products are sold in highly competitive markets, so the company is unable to raise prices without losing an unacceptable numbers of customers. The company has an extremely effective lean production system, so there are no beginning or ending work in process or finished goods inventories **TIP. To answer the questions below, it will be most helpful if you prepare segmented income statements as illustrated in your textbook Required: 1. What is the company's over-all break-even point in dollar sales? 2. Of the total fixed expenses of $255.000, $23,850 could be avoided if the Gold product is dropped, $114,100 if the Silver product is dropped, and $41,000 if the Copper product is dropped. The remaining fixed expenses of $76,050 consist of common fixed expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely a. What is the break-even point in unit sales for each product? b. If the company sells exactly the break even quantity of each product, what will be the overall profit of the company? middleware252F Variable expense per unit $0.90 $0.60 31.10 Total fixed expenses are $255,000 per year. All three products are sold in highly competitive markets, so the company is unable to raise prices without losing an unacceptable numbers of customers. The company has an extremely effective lean production system, so there are no beginning or ending work in process de finished goods inventories. **TIP: To answer the questions below, it will be most helpful if you prepare segmented income statements as illustrated in your textbook Required: 1. What is the company's over-all break-even point in dollar sales? 2. Of the total fixed expenses of $255,000, $23,850 could be avoided if the Gold product is dropped. $114,100 if the Silver product is dropped, and $41,000 if the Copper product is dropped. The remaining fixed expenses of 576,050 consist of common fixed expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely a. What is the break-even point in unit sales for each product? b. If the company sells exactly the break-even quantity of each product, what will be the overall profit of the company? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 28 What is the company's over-all break-even point in dollar sales? (Round CM ratio to 4 decimal places and flest answer to the nearest thousand dollars.) S 623,333 Break-even point in dollar sales Reg 2A > Total fixed expenses are $255,000 per year All three products are sold in highly competitive markets, so the company is unable to raise prices without losing an unacceptable numbers of customers The company has an extremely effective lean production system, so there are no beginning or ending work in process or trusted goods inventories **TIP To answer the questions below, it will be most helpful if you prepare segmented income statements as thustrated in you textbook Required: 1. What is the company's over-all break-even point in dollar sales? 2. Of the total fixed expenses of $255,000, $23,850 could be avoided if the Gold product is dropped, $44100 il me Sever products dropped, and $41.000 if the Copper product is dropped. The remaining fixed expenses of $76,050 consist of common ford expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely a. What is the break-even point in unit sales for each product? b. If the company sells exactly the break-even quantity of each product, what will be the overall proht of the campani? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 . What is the break-even point in unit sales for each product? (Do not round Intermediate calculations) Copper Silver Gold 66,350 174 313 54667 Reg 28 > Break-even point in unit sales Prev Total fixed expenses are $255,000 per year. All three products are sold in highly competitive markets, so the company is unable to raise prices without losing an unsucceptable numbers of customers. The company has an extremely effective lean production system, so there are no beginning or ending work in process or fried goods inventories **TIP: To answer the questions below, it will be most helpful if you prepare segmented income statements as thustrated in you textbook Required: 1. What is the company's over-all break-even point in dollar sales? 2. Of the total fixed expenses of $255,000, $23,850 could be avoided if the Gold product is dropped, 5114,100 f the Silver products dropped, and $41,000 if the Copper product is dropped. The remaining fixed expenses of $76,050 consist of common fand expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business entre a. What is the break-even point in unit sales for each product? b. If the company sells exactly the break-even quantity of each product, what will be the overall profit of the company Complete this question by entering your answers in the tabs below. Reg 2 Reg 2A Reg 1 If the company sells exactly the break-even quantity of each product, what will be the overall profit of the company? 0 $ Net operating income

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_2

Step: 3

blur-text-image_3

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

Auditing Advances In Behavioral Research

Authors: Lawrence A. Ponemon, David R.L. Gabhart

1st Edition

0387976191, 978-0387976198

More Books

Students also viewed these Accounting questions

Question

Who are the prime users of iris analysis?

Answered: 1 week ago

Question

How We Listen?

Answered: 1 week ago