Problem A, B, and C "To be solved by DKhetan"

Problem A Assume the Mountain Furniture Company sells two kinds of picnic tables, pine and redwood. At a 2:1 unit sales mix in which Mountain sells two pine tables for every redwood table, the following revenue and cost information is available. Redwood Table Unit selling price Unit variable costs Unit contribution margin $400 $250 $150 $1,200 $ 600 $ 600 Fixed costs per month: $18,000 Assuming a 2:1 sales mix, calculate Mountain Furniture's current monthly average unit contribution margin, break-even sales volume, and number of units of Pine and Redwood tables at break-even point. Problem B The Farm Fresh Food Market is a merchandiser of organic food items. The company is considering the possibility of selling pomegranates that would sell for $0.59 each. Pomegranates can be acquired in unlimited quantities for $0.43 each. There are no additional variable costs associated with acquiring and selling pomegranates since labor is on a salaried basis. However, in order to acquire pomegranates at this price, Farm Fresh must pay $4,000 per year for membership in an International co-op. Required: a. How many pomegranates would Farm Fresh need to sell annually to justify joining the co-op (breakeven)? b. What would be the total revenue at the breakeven point? c. How many pomegranates would the company need to sell to earn a profit of $6,000? d. If pomegranates cost were $0.51 instead of $0.43, how many pomegranates would need to be sold in order to earn the same $6,000? Problem C During the most recent fiscal period, Karson Company had sales of $80,000. Variable costs are 40% of sales and fixed costs amounted to $16,000 for the year. Calculate the following: a. Contribution margin ratio b. c. d. Operating leverage Breakeven sales in dollars Operating profit if sales increase by 15% next year