Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 5 (11 marks) Oriental Furnitures makes three types of quality wooden furniture. Information for these three products are shown below: ---- Variable cost per
Question 5 (11 marks) Oriental Furnitures makes three types of quality wooden furniture. Information for these three products are shown below: ---- Variable cost per unit $250 $600 - 13'1\"\"th \"n" sales 15,000 7,000 2,000 24,000 (annual) . 60 30 10 100 Sales mix percent percent percent percent Total annual xed costs are $4,000,000. Assume the sales mix remains the same at all levels of sales. Required: SHOW YOUR WORKINGS FOR ALL SECTIONS a) Calculate the weighted average unit contribution margin, assuming a constant sales mix. (2 marks) ANSWER b): b) How many units of each lrniture type must be sold to break even? (3 marks) ANSWER b): 0) Calculate in sales units the margin of safety for Oriental Furnitures, assuming projected sales are 24 000 units? (2 mark) ANSWER c): d) Suggest two ways Oriental Fumitures can improve its margin of safety? (4 mark) ANSWER d)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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