Question
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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