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pplease help me solve this 4 Problem D (38 points): 5 Weather Tight sells windows and doors. The following data applies to the company's current

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4 Problem D (38 points): 5 Weather Tight sells windows and doors. The following data applies to the company's current operating activities: Solution: Please place your answer and supporting calculations in the space below and either highlight your final answer or surround it with a border so that it can be easily identified by the grader. Total 100.000% 1 Total Units (products combined) to Break Even: Current sales mix in units percentage Selling Price per Unit Variable Cost per Unit Current Unit Volume Fixed Costs Windows 65.00% 5225 $105 28,600 $470,250 Doors 35.00% $610 $425 15,400 $384,750 44,000 $855,000 13 2 Units of Each Product to Break Even: 14 Use the space provided below for organized calculations (Including things like Current Unit Volume, Wtd CM, Wtd Average CM, 15 Sales Mix, etc. See the narrated lectures for guidance. The detailed questions you are required to answer start on line 40 of this 16 worksheet and are also listed briefly in the SOLUTION space provided starting In Column J of this worksheet: 17 3 Total Sales Dollars (products combined) to Break Even: 4 Sales Dollars by Product to Break Even: 5 Current Contribution Margin Income Statement at Break Even: 41 6 Contribution Margin Income Statement at Current Sales: 40 Required: 1 What is the current break-even point in units for both products combined? (2 points) 2 What is the number of units of each product that need to be sold at the current break-even point? (2 points) 3 What is the current break-even point in sales dollars for both products combined? (2 points) 4 How much, in sales dollars, of each product does the company currently need to sell at the break-even point? (2 points) 45 5 Show the Current Contribution Margin Income Statement at Break-even. (6 points) 6 Show the Contribution Margin Income Statement at the Current Sales Level. (7 points) 7 What is the Margin of Safety at the Current Sales Level? (3 points) 44 47 48 49 The Company is working on budgets for next year and plans a 10% increase in Target Pretax Income; a 10% increase in both Selling 50 Price and Variable Cost; and a 15% Increase in Fixed Costs, keeping the Current Sales Mix In Dollars constant. 7 Margin of Safety at Current Sales Level: 52 53 1 55 8 Show the Contribution Margin Income Statement at the Target Pretax Income Level. HINT--you need to start at the bottom of the Contribution Margin Income Statement and work your way up to the top to figure this out. (8 points) 9 What is the Sales Unit Volume of each product needed to achieve the Target Level of Pretax Income? (3 points) 10 What is the Margin of Safety at the Target Sales Level? (3 points) | 8 Contribution Margin Income Statement at the Target Level of Pretax Income: 6 Contribution Margin Income Statement at Current Sales: 41 42 Required: 1 What is the current break-even point in units for both products combined? (2 points) 2 What is the number of units of each product that need to be sold at the current break-even point? (2 points) 43 3 What is the current break-even point in sales dollars for both products combined? (2 points) 44 | 4 How much, in sales dollars, of each product does the company currently need to sell at the break-even point? (2 points) 45 5 Show the Current Contribution Margin Income Statement at Break-Even. (6 points) 6 Show the Contribution Margin Income Statement at the Current Sales Level. (7 points) 47 7 What is the Margin of Safety at the Current Sales Level? (3 points) 7 Margin of Safety at Current Sales Level: The Company is working on budgets for next year and plans a 10% increase in Target Pretax Income; a 10% increase in both Selling 50 Price and Variable Cost; and a 15% increase in Fixed Costs, keeping the Current Sales Mix in Dollars constant. 51 8 Show the Contribution Margin Income Statement at the Target Pretax Income Level. HINT--you need to start at the bottom of the 53 Contribution Margin Income Statement and work your way up to the top to figure this out. (8 points) 9 What is the Sales Unit Volume of each product needed to achieve the Target Level of Pretax Income? (3 points) 10 What is the Margin of Safety at the Target Sales Level? (3 points) 8 Contribution Margin Income Statement at the Target Level of Pretax Income: Check Figures: Item 4: Doors = $1,278,757; Check Figure for Windows is not provided. Item 6: Total Contribution Margin = $6,281,000; Item 8: Windows Pre-Tax Target Income = $3,257,925; Check Figure for Doors is not provided. 9 Units of each Product to reach Target Pretax Income: 10 Margin of Safety at Target Sales Level

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