Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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_2

Step: 3

blur-text-image_3

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

Payroll Accounting

Authors: Bernard J Bieg, Judith A Toland

24th Edition

1285437063, 9781285437064

More Books

Students also viewed these Accounting questions

Question

Would I be a more effective student if I spent less time online?

Answered: 1 week ago