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
What amount of fixed costs are allocated to the Sneaky Sniper division?
Group of answer choices
$500,000
$300,000
$200,000
$0
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Question 53 pts
What is the average unit cost of a Sneaky Sniper?
Group of answer choices
$12
$20
$22
$25
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Question 63 pts
What is the contribution margin per unit of Super Mega Blast-O-Max?
Group of answer choices
$10
$12
$15
$18
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Question 73 pts
If Sneaky Sniper sales were zero, how many Super Mega Blast-O-Max units would Toms need to sell in order to break even?
Group of answer choices
23,333
20,000
33,334
16,667
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