Question
Thomas ltd sells tables. For the purposes of CVP analysis, the shop owner has divided salesinto three categories, as follows: Product type, Sales price, Cost
Thomas ltd sells tables. For the purposes of CVP analysis, the shop owner has divided salesinto three categories, as follows:
Product type, Sales price, Cost Sales, commission Cedartable$1,200$660$60
teaktable$720$324$36 Oaktable$600$288$30
50 per cent of the shop's sales are Teak table, 30 per cent are Cedar and the remaining 20 per cent are Oak.
The shop's annual fixed costs are $178200.
Answers to all questions are required: (where necessary round off answer to 2 decimal places)
Question 11(3 points)
1. Calculate the unit contribution margin for each product type.
Question 11 options:
Question 12(3 points)
2. What is the shop's sales mix
Question 13(3 points)
3. Calculate the weighted average unit contribution margin, assuming a constant sales mix.
Question 13 options:
Question 14(3 points)
4. What is the shop's break-even sales revenue in dollars? Assume a constant sales mix.
Question 14 options:
Question 15(4 points)
5. How many tables of each type must be sold to earn a target net profit of $125,000? Assume a constant sales mix.
Question 15 options:
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