Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

XYZ Company produces two models of wood chairs, A and B. The selling price per unit and the variable manufacturing cost per unit for model

image text in transcribed
image text in transcribed
XYZ Company produces two models of wood chairs, A and B. The selling price per unit and the variable manufacturing cost per unit for model A are $180 and $105 respectively. The selling price per unit and the variable manufacturing cost per unit for model B are $240 and $114 respectively. The variable selling expense per unit for models A and B are $30 per unit and $36 per unit respectively. Assume that total fixed expenses are $118,800 per month and the expected monthly sales for models A and B are 5,400 units and 1,350 units respectively. If the sales mix and sales units are as expected, the break-even in sales ($) is: (round figures to the nearest number) Select one: O a. None of the given answers O b. 196,974 C. 267,718 d. 422,400 e. 292,431 XYZ Company is currently selling its single product for $15. Variable costs are estimated to remain at 70% of the current selling price and fixed costs are estimated to be $4,800 per month. If XYZ decreases its selling price by 10%, its contribution margin ratio will: Select one: a. increase. O b. Cannot determine with the information given. O c. None of the given answers. O d. not change. e decrease

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

Recommended Textbook for

Introductory Statistics For The Behavioural Sciences

Authors: Joan Welkowitz, Robert B. Ewen, Jacob Cohen

2nd Edition

0127432604, 9780127432601

More Books

Students also viewed these Accounting questions

Question

What are the benefits of using positive self-talk? (p. 151)

Answered: 1 week ago

Question

Describe the importance of global talent management.

Answered: 1 week ago

Question

Summarize the environment of recruitment.

Answered: 1 week ago