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The Glass Menagerie makes small, pressed-resin ducks and ducklings. They are sold as sets containing one duck and five ducklings. The following information is available
The Glass Menagerie makes small, pressed-resin ducks and ducklings. They are sold as sets containing one duck and five ducklings. The following information is available about the company's selling prices and costs Ducks Ducklings Selling Price $24 $12 Variable Cost 12 8 Annual fixed cost $288,000 Use the contribution margin ratio to calculate break even point sales A. What is the average contribution margin ration? Round answer to 1 decimal. B. Calculate the monthly break-even point if fixed cost is incurred evenly throughout the year _____________________________sets per month At the BEP indicate how many units of each product will be sold monthly? Ducks ________________per month Ducklings __________________ per month C. If the company wants to earn $96000 pre-tax profit monthly, how many units of each product must it sell Ducks____________per month Ducklings____________per month D. Company management has specified $31,680 as monthly net income, and the company is in a 40 percent tax bracket. Sales mix has changed to one duck to nine ducklings. How much total revenue and what number of products must be sold to achieve the company's profit objective Total revenue $____________________________ per year Ducks _____________________________- per year Ducklings _______________________ per year E. Refer to the original information. If the company can reduce variable cost per duckling by $4 by raising monthly fixed cost by $8,500 how many sets will need to be sold to break-even? ________________________sets Should the company make these changes
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