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Slicker Company makes umbrellas and outerwear items for rainy and snowy days. It had the following cost structure for the past year: View the

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Slicker Company makes umbrellas and outerwear items for rainy and snowy days. It had the following cost structure for the past year: View the cost structure for the past year. Read the requirements. Cost structure Requirement a. What is the weighted average contribution margin per unit rounded to the nearest cent? Complete the table below to determine the total weighted average contribution margin per unit. (Round all per unit amounts to the nearest cent, X. Weighted average Selling price per unit Variable cost per unit Contribution margin per unit Sales Mix contribution margin per unit % Umbrellas Clothing Total % Requirement b. Assume that the sales mix is quite constant. How many units of each product line are required to break even? (Calculate the total calculate the breakeven for the umbrellas and clothing, rounding those answers up to the nearest whole unit as well. Rounding differences may co Breakeven point Umbrellas Clothing Total Requirement c. What are the particular internal and external business risks that the company faces? (Select all that apply.) A. Unexpected weather conditions C. Leaming curves E. Other-periods analysis G. Competition of new entrants B. Cust D. Poor OF. Finar H. Pract J. Rele L None Requirement d. Assume that the company wishes to generate $310,000 of operating income. How many units in total does the company need to produx Total units needed to achieve operating income of $310,000 = | The business model K. Competitors Requirement e. Assume the company wants to earn a $1,725,000 target operating income. What sales revenues must be generated? Complete the table below to determine the units and respective sales revenues needed to earn a $1,725,000 target operating income. Umbrellas Clothing Total Units Sales revenue Items Umbrellas Clothing Total Units produced and sold Average sales price per unit Direct materials cost per unit Direct labor cost per unit 96,000 24,000 120,000 $ 16 $ 78 $ 3,408,000 $ 4 $ 11 S 648,000 $ 3.00 $ 6.00 $ 432,000 Variable overhead per unit $ 0.40 $ 3.10 $ 112,800 Fixed overhead per unit $ 2.90 $ 8.00 $ 470,400 Selling and administrative cost per unit $ 0.50 $ 3.50 $ Direct fixed selling and administrative costs $77,000 total $79,000 total S Allocated fixed administrative costs $47,000 total $32,000 total S 132,000 156,000 79,000 unded tot Requirements Print Done a. What is the weighted average contribution margin per unit rounded to the nearest cent? b. Assume that the sales mix is quite constant. How many units of each product line are required to break even? c. What are the particular internal and external business risks that the company faces? d. Assume that the company wishes to generate $310,000 of operating income. How many units in total does the company need to produce and sell? e. Assume the company wants to earn a $1,725,000 target operating income. What sales revenues must be generated? f. Many more umbrellas are sold than clothing. Should more advertising and other efforts be directed toward promoting the clothing lines in an effort to increase the number of units sold? Print Done

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