Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Victoria Company reports the following operating results for the month of April. VICTORIA COMPANY CVP Income Statement For the Month Ended April 30, 2017 Total

image text in transcribed
image text in transcribed
Victoria Company reports the following operating results for the month of April. VICTORIA COMPANY CVP Income Statement For the Month Ended April 30, 2017 Total Per Unit $456,500 $55 251,075 30.25 Sales (8,300 units) Variable costs Contribution margin Fixed expenses Net income 205,425 $24.75 195,525 $9.900 Management is considering the following course of action to increase net income: Reduce the selling price by 3%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 10%. Using the contribution margin technique, compute the break-even point in units and dollars and margin of safety in dollars: (Round Intermediate calculations to 4 decimal places es. 0.2522 and final answer to O decimal places, eg. 2,510.) (a) Assuming no changes to selling price or costs. Break-even point units Break-even point $ Margin of safety $ (61) Assuming changes to sales price and volume as described above. Break-even point units Break-even point $ $ Margin of safety $ $ Current Attempt in Progress Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows Sales Mix Unit Contribution Margin Lawnmowers 20 % $34 Weed-trimmers 50 %6 $23 Chainsaws 30 % $37 Yard Tools has fixed costs of $4,410,000 Compute the number of units of each product that Yard Tools must sell in order to break even under this product mix. (Use the Weighted Average Unit Contribution Margin Ratio rounded to 2 decimal places eg. 0.25 and round final answers to decimal places, eg. 2,510.) Lawnmowers units Weed-trimmers units Chainsaws units

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Describe the four-parts of W. Demings Profound Knowledge System.

Answered: 1 week ago