Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Thank you!!! Larry Company makes and sells 2 models of dishwashers, Model ABC and Model XYZ. For every 2 Model ABC sold, 3 Model XYZ

image text in transcribedimage text in transcribedimage text in transcribedThank you!!!

Larry Company makes and sells 2 models of dishwashers, Model ABC and Model XYZ. For every 2 Model ABC sold, 3 Model XYZ are sold. Larry Company incurs $1,170,000 in fixed costs per month. The following information is also provided: Sales per unit Variable Cost per unit CM per unit Model ABC $470 $250 $220 Model XYZ $700 $300 $400 How many units of Model XYZ would the company need to sell at its breakeven point? (Round intermediary calculations to two decimal places and the final answer to the nearest unit.) A. 3,774 units B. 3,567 units C. 2,140 units D. 2,265 units The fixed expenses of Greg's Snowboards are $830,000. The selling price for one snowboard is $180. The variable cost per unit is $70. If the company sells 9,100 snowboards, its operating income is a A. gain of $1,445,000. B. gain of $1,831,000. C. gain of $171,000. D. loss of $193,000. Gabe Industries sells two products, Basic models and Deluxe models. Basic models sell for $38 per unit with variable costs of $30 per unit. Deluxe models sell for $49 per unit with variable costs of $20 per unit. Total fixed costs for the company are $805.00. Gabe Industries typically sells five Basic models for every Deluxe model. What is the breakeven point in total units? A. 58 units B. 70 units C. 16 units D. 21 units

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions