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Requlred Informatlorn Problem 18-3A CVP analysis and charting LO P2, P3 The following information applies to the questions displayed below, Praveen Co. manufactures and markets
Requlred Informatlorn Problem 18-3A CVP analysis and charting LO P2, P3 The following information applies to the questions displayed below, Praveen Co. manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding, that has not been as profitable as planned. Since Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year's plans call for a $270 selling price per 100 yards of XT rope. Its fixed costs for the year are expected to be $205.200, up to a maximum capacity of 550,000 yards of rope. Forecasted variable costs are $216 per 100 yards of XT rope Problem 18-3A Part I. Estimate Product XT's break-even point in terms of sales units and sales dollars. (1 unit = 100 yards) (Do not round Intermediate calculation%) per 100 yds. Less: riable cost Contribution margin margin ratio Choose Numerator: Choose margin ratio per unit ales per unit | Contribution margin r 1(a) Estimate Product XT's break-even point in terms of sales units. (1 unit 100 yards) Choose Numerator: Choose Break-even units tribution margin per Fixed costs Break-even units 205,200 1(b) Estimate Product XT's break-even point in terms of sales dollars Choose Numerator: Choose Break-even dollars ixed costs ibution margin ratio Break-even dollars = 205,200 Required Informatlon Problem 18-3A CVP analysis and charting LO P2, P3 The following information applies to the questions displayed below.] Praveen Co. manufactures and markets a number of rope products. Management is considering the future of Product XT. a special rope for hang gliding, that has not been as profitable as planned. Since Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year's plans call for a $270 selling price per 100 yards of XT rope. Its fixed costs for the year are expected to be $205,200, up to a maximum capacity of 550,000 yards of rope. Forecasted variable costs are $216 per 100 yards of XT rope. Problem 18-3A Part 2 3. Prepare a contribution margin income statement showing sales, variable costs, and fixed costs for Product XT at the break-even point. PRAVEEN CO Contribution Margin Income Statement (at Break-Even)-Product XT Units s per unit Total Contribution margin
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