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(The contribution margin ratio is not 54.12% either) Required information Problem 7-51 Cost-Volume-Profit Analysis with Income Taxes and Multiple Products (Appendix) (LO 7-1,7- 2, 7-4,7-5,7-11)

image text in transcribedimage text in transcribed(The contribution margin ratio is not 54.12% either)

Required information Problem 7-51 Cost-Volume-Profit Analysis with Income Taxes and Multiple Products (Appendix) (LO 7-1,7- 2, 7-4,7-5,7-11) The following information applies to the questions displayed below Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able to produce up to 24,000 pairs of cross-country skis of either the mountaineering model or the touring model. The sales department assures management that it can sell between 18,000 and 22,000 units of either product this year. Because the models are very similar, the company will produce only one of the two models. The following information was compiled by the accounting department Model Mountaineering Touring selling price per unit Variable costs per unit $141.00 83.70 $129.00 83-70 Fixed costs will total $590,400 if the mountaineering model is produced but will be only $502,200 if the touring model is produced. Alpine Thrills Ski Company is subject to a 40 percent income tax rate. Problem 7-51 Part1 Required: 1. Compute the contribution-margin ratio for the touring model. (Round your final answer to 2 decimal places.) Answer is complete but not entirely correct. tribution-margin 35.12 2. If Alpine Thrills Ski Company desires an after-tax net income of $37,620, how many pairs of touring skis will the company have to sell? (Do not round intermediate calculations. Round your final answer to the nearest whole unit.) Number of pairs to be sold units 3. How much would the variable cost per unit of the touring model have to change before it had the same break-even point in units as the mountaineering model? (Round your intermediate calculations and final answer to 2 decimal places he variable cost per un by 4. Suppose the variable cost per unit of touring skis decreases by 15 percent, and the total fixed cost of touring skis increases by 15 percent. Compute the new break-even point. (Do not round intermediate calculations. Round your final answer up to nearest whole unit.) New break-even point units 5. Suppose management decided to produce both products. If the two models are sold in equal proportions, and total fixed costs amount to $532,800, what is the firm's break-even point in units? (Do not round intermediate calculations and round your final answer up to nearest whole number.) Break-even point units

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