Answered step by step
Verified Expert Solution
Question
1 Approved Answer
TI3-6 (similar to) Burlington Windows plans to sell two different brands of windows-Chad and Musk-and budgets the following (Click the icon to view the budgets.)
TI3-6 (similar to) Burlington Windows plans to sell two different brands of windows-Chad and Musk-and budgets the following (Click the icon to view the budgets.) Calculate the breakeven point for Burlington Windows in terms of (a) the number of units sold and (b) revenues Que Begin by determining the sales mix. (The windows can only be sold in whole units. Enter the ratios as whole numbers.) ,400 units of Chad Windows sold for every That is, we think of Burlington Windows selling a bundle of 1,700 units of Musk Windows sold, A budgeted sales mix of is a ratio of 1 2 units of Chad Windows and 1 unit(s) of Musk Windows. Next, calculate the contribution margin of the bundle Number of Units of Chad Windows and Musk Windows in Each Bundle Contribution Margin per unit for Chad Windows and Musk Windows Contribution Margin of the Bundle 100 $ 200 Chad Windows Musk Windows Total Determine the formula used to calculate the breakeven point of the bundle. Then, enter the amounts in the formula to calculate the breakeven point in bundles. 50 50 $ 250 Contribution margin per bundle 250 Breakeven point in bundles 680 Fixed costs 170,000 Calculate the breakeven point in terms of units Chad Windows Must Windows Total number of units to break evern Data Table Chad Windows Musk Windows Total 3,400 1,700 5,100 sales $ 2,380,000 S Revenues, $700 and $450 per unit Variable costs, $600 and $400 per unit Contribution margin. $100 and $50 per unit Fixed costs Operating income 765,000 $ 3,145,000 680,000 2,720,000 2.040,000 340,000 S 85,000 -$ 425.000 170,000 255,000 Print Done
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started