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5 Required information Problem 7-51 Cost-Volume-Profit Analysis with Income Taxes and Multiple Products (Appendix) (LO 7-1,7-2, 7-4, 7-5, 7-11) [The following information applies to the questions displayed below) Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able to produce up to 26,000 pairs of cross-country skis of either the mountaineering model or the touring model The sales department assures management that it can sell between 20,000 and 24,000 units of either product this year Because the models are very similar, the company will produce only one of the two models. K The following information was compiled by the accounting department Selling price per unit Variable costs per unit Model Mountaineering $143.00 84.70 Touring $131.00 84.70 ces Fixed costs will total $598.400 if the mountaineering model is produced but will be only $508,200 if the touring model is produced Alpine Thrills Ski Company is subject to a 50 percent income tax rate. Problem 7-51 Part 1 Required: 1. Compute the contribution-margin ratio for the touring model (Round your final answer to 2 decimal places.) Contribution-muigin Saved Help Save & Exit Submit gnment Quiz You received partial credit in the previous attempt View previous attempt T Required information Problem 7-51 Cost-Volume-Profit Analysis with Income Taxes and Multiple Products (Appendix) (LO 7-1,7-2, 7-4, 7-5, 7-11) The following information applies to the questions displayed below) Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able to produce up to 26,000 pairs of cross-country skis of either the mountaineering model or the touring model. The sales department assures management that it can sell between 20,000 and 24,000 units of either product this year. Because the models are very similar, the company will produce only one of the two models The following information was compiled by the accounting department Selling price per unit Variable costs per unit Model Mountaineering $143.00 84.70 Touring $131.00 84.70 Fixed costs will total $598,400 if the mountaineering model is produced but will be only $508,200 if the touring model is produced. Alpine Thrills Ski Company is subject to a 50 percent income tax rate. Problem 7-51 Part 3 3. How much would the variable cost per unit of the touring model have to change before it had the same break-even point in units as the mountaineering model? (Round your intermediate calculations and final answer to 2 decimal places.) The variable cost per unit would have to decrease by ! of 5 Required information Problem 7-51 Cost-Volume-Profit Analysis with Income Taxes and Multiple Products (Appendix) (LO 7-1,7-2, 7-4, 7-5, 7-11) The following information applies to the questions displayed below) Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able to produce up to 26,000 pairs of cross-country skis of either the mountaineering model of the touring model The sales department assures management that it can sell between 20,000 and 24,000 units of either product this year. Because the models are very similar, the company will produce only one of the two models The following information was compiled by the accounting department OK Selling price per unit Variable costs per unit Model Mountaineering $143.60 84.70 Touring $131.00 84.70 ces Fixed costs will total $598.400 if the mountaineering model is produced but will be only $508,200 if the touring model is produced Alpine Thrills Ski Company is subject to a 50 percent income tax rate Problem 7-51 Part 5 5. Suppose management decided to produce both products. If the two models are sold in equal proportions, and total fixed costs amount to $536,800, what is the firm's break-even point in units? (Do not round intermediate calculations and round your final answer up to nearest whole number.) Break even point units
