Question
Please see problem below. I have found unit variable cost, contribution margin, etc but I cannot figure out the blanks under sales mix and package
Please see problem below. I have found unit variable cost, contribution margin, etc but I cannot figure out the blanks under sales mix and package contribution margin in $. I cannot figure out the remaining 5 values.
Suppose that Head-First Company now sells both bicycle helmets and motorcycle helmets. The bicycle helmets are priced at $77 and have variable costs of $45 each. The motorcycle helmets are priced at $230 and have variable costs of $135 each. Total fixed cost for Head-First as a whole equals $66,500 (includes all fixed factory overhead and fixed selling and administrative expense). Next year, Head-First expects to sell 5,200 bicycle helmets and 2,080 motorcycle helmets.
Required:
1.Form a package of bicycle and motorcycle helmets based on the sales mix expected for the coming year.
2.Calculate the break-even point in units for bicycle helmets and for motorcycle helmets.
Product Price Unit Variable Cost Unit CM Salesmix package CM
Bicycle helmet $77 $ 45 $32 ??? $??????
Motorcycle helmet $230 $135 $95 ??? $??????
Package total $????
Break-Even Bicycle Helmets= 950units
Break-Even Motorcycle Helmets= 380units
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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