Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(suggested time 10 - 12 minutes, 9 marks) Chill Flash sells yoga and relaxation systems. The business is divided into two divisions. Variable costing income

image text in transcribed
image text in transcribed
(suggested time 10 - 12 minutes, 9 marks) Chill Flash sells yoga and relaxation systems. The business is divided into two divisions. Variable costing income statements for the current year are presented below: Yoga Relax Systems Total Sales $600,000 $200,000 $800,000 Variable costs 480.000 140,000 620,000 Contribution margin $120.000 $ 60,000 180,000 Fixed costs 158.000 Net income $ 22.000 Determine the sales mix and contribution margin ratio for each service and then answer the following questions 1) The sales mix ratio for the yoga product is 96 2) The contribution ratio for relax systems is 96 3) Calculate the company's weighted average contribution margin ratio. % Assuming the weighted-average contribution margin ratio of 40% 4) Calculate the company's break-even point in dollars. $ 5) Determine the sales level, in dollars, for each service at the break-even point. The sales level for the yoga product is $ Assuming the weighted average contribution margin ratio of 40% 4) Calculate the company's break-even point in dollars. S 5) Determine the sales level, in dollars, for each service at the break-even point. The sales level for the yoga product is s 6) The company has a desired net income of $480,000. What amount of revenue would the company need to eam if they achieve this goal with the current sales mix? $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Value Added Auditing CERM Academy Series On Enterprise Risk Management

Authors: Greg Hutchins

4th Edition

978-0965466554

More Books

Students also viewed these Accounting questions

Question

design a simple performance appraisal system

Answered: 1 week ago