Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Thomas' family also runs a gourmet food store that sells two main products: Premium Caviar and Goose Foie Gras. They import the Premium Caviar from

image text in transcribed
Thomas' family also runs a gourmet food store that sells two main products: Premium Caviar and Goose Foie Gras. They import the Premium Caviar from Russia, and purchase Goose Foie Gras from Upstate New York. The two products are sold in boxes. Thomas gathers the following information: Gras Totals Units 4.000 12.000 16.000 Revenue $100,000 S180,000 S280,000 Variable costs 56,000 105,000 61,000 Fixed costs -20.000-000-60000 Profit S24.000 S35.000 3.59000 Selling price per unit $25.00 S15.00 Contribution margin per un 11.00 S6.25 Profit margin per unit $6.00 $2.92 When Thomas took accounting courses at college, he knows how to do well. However, he just remembers how to do the analysis for those companies with only one product. Therefore, he needs your help to calculate the following: analysis pretty . What is the business' weighted average contribution margin per unit? (show your computation) b. Calculate the business' break-even point in units assuming the current sales mix. (show your e. What will be the number of Premium Caviar and Goose Foie Gras boxes at the break-even level of sales? (show your computation) d. What is the business' weighted average contribution margin ratio? (show your computation) e. What level of sales (in dollars) will be needed to earn a profit of S64,950 assuming the current sales mix? (show your computation) f. What will be the sales (in dollars) of Premium Caviar and Goose Foie Gras boxes for the business' total sales calculated in Part e? (show your computation)

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

Accounting And Finance For Non Specialists

Authors: Eddie McLaney, Peter Atrill

8th Edition

9780273778165

More Books

Students also viewed these Accounting questions

Question

Is this really true, or am I just taking it for granted?

Answered: 1 week ago

Question

Do you favor a civil service system? Why or why not?

Answered: 1 week ago