Question
Sales mix and break-even analysis Conley Company has fixed costs of $18,696,000. The unit selling price, variable cost per unit, and contribution margin per unit
Sales mix and break-even analysis
Conley Company has fixed costs of $18,696,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow:
Product Selling Price Variable Cost per Unit Contribution Margin per Unit Yankee $140 $80 $60 Zoro 240 140 100
The sales mix for products Yankee and Zoro is 45% and 55%, respectively.
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.
Open spreadsheet Determine the break-even point in units of Yankee and Zoro of the overall (total) product, E. If required, round your answers to the nearest whole number.
Product Yankee: fill in the blank 2 units Product Zoro: fill in the blank 3 units
Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:
Units Produced Total Costs 99,500 $28,465,250 116,500 31,346,750 131,500 33,889,250
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
Open spreadsheet -
Determine the variable cost per unit and the total fixed cost. Round your answer for variable cost to the nearest cent. Round your answer for total fixed costs to the nearest dollar.
Variable cost: $fill in the blank 2 per unit Total fixed cost: $fill in the blank 3
-
Based on part (a), estimate the total cost for 83,000 units of production. Round your answer to the nearest dollar.
Total cost for 83,000 units: $fill in the blank 4
Sales mix and break-even analysis
Conley Company has fixed costs of $18,696,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow:
| Product | Selling Price | Variable Cost per Unit | Contribution Margin per Unit | ||||||
| Yankee | $140 | $80 | $60 | ||||||
| Zoro | 240 | 140 | 100 | ||||||
The sales mix for products Yankee and Zoro is 45% and 55%, respectively.
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.
Determine the break-even point in units of Yankee and Zoro of the overall (total) product, E. If required, round your answers to the nearest whole number.
Product Yankee: fill in the blank 2 units Product Zoro: fill in the blank 3 units
Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:
| Units Produced | Total Costs | |||
| 99,500 | $28,465,250 | |||
| 116,500 | 31,346,750 | |||
| 131,500 | 33,889,250 | |||
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
-
Determine the variable cost per unit and the total fixed cost. Round your answer for variable cost to the nearest cent. Round your answer for total fixed costs to the nearest dollar.
Variable cost: $fill in the blank 2 per unit Total fixed cost: $fill in the blank 3 -
Based on part (a), estimate the total cost for 83,000 units of production. Round your answer to the nearest dollar.
Total cost for 83,000 units: $fill in the blank 4
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