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Toms Nerp Guns produces toys for simulated combat. They have two products, the Super Mega Blast-O-Max and the Sneaky Sniper. The firm is predicting the

Toms Nerp Guns produces toys for simulated combat. They have two products, the Super Mega Blast-O-Max and the Sneaky Sniper. The firm is predicting the following for the coming year:

Fixed costs of $500,000

  • Fixed costs are allocated to each product based on unit sales

Super Mega Blast-O-Max

  • 20,000 unit sales
  • $15 unit cost
  • Unit sale price of $30

Sneaky Sniper

  • 30,000 unit sales
  • $12 unit cost
  • Unit sale price of $25

4. What amount of fixed costs are allocated to the Sneaky Sniper division? 2 points

5. What is the average unit cost of a Sneaky Sniper? 3 points

6. What is the contribution margin per unit of Super Mega Blast-O-Max? 3 points

7. If Sneaky Sniper sales were zero, how many Super Mega Blast-O-Max units would Toms need to sell in order to break even? 3 points

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