Question
Shotz Corporation sells three products: J, K, and L. The following information was taken from a recent budget: J K L Unit sales 76,000 266,000
Shotz Corporation sells three products: J, K, and L. The following information was taken from a recent budget:
| J | K | L | |||||||||
| Unit sales | 76,000 | 266,000 | 38,000 | ||||||||
| Selling price | $ | 54 | $ | 86 | $ | 75 | |||||
| Variable cost | 32 | 62 | 45 | ||||||||
Total fixed costs are anticipated to be $3,025,000.
Required:
A. Determine Shotz’s sales mix.
B. Determine the weighted-average contribution margin. (Round your answer to 2 decimal places.)
C. Calculate the number of units of J, K, and L that must be sold to break even.
A. Sales mix: J K L B. Weighted-average CM C. Break-even volume: J K L % 96 96 units units units
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A To determine Shotz Corporations sales mix you need to find the proportion of each products sales t...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
