The Matrix Company has three product lines of belts-A, B, and C-with contribution margins of $7, $5, and $4, respectively. The president foresees sales of 400,000 units in the coming period, consisting of 40,000 units of A, 200,000 units of B, and 160,000 units of C. The company's fixed costs for the period are $1,020,000. What is the total number of units required to breakeven? Answer:
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- The Janobi Company has three product lines of beer mugs-A, B, and C-with contribution margins of $5, $4, and $2, respectively. The president foresees sales of 238,000 units in the coming period, consisting of 34,000 units of A, 136,000 units of B, and 68,000 units of C. The company's fixed costs for the period are $525,000. Read the requirements. Requirement 1. What is the company's breakeven point in units, assuming that the given sales mix is maintained? Begin by determining the sales mix. For every 1 unit of Product A, units of Product B, and units of Product C are sold.The Konopka Company has three product lines of belts-A, B, and C-with contribution margins of $4, $3, and $2, respectively. The president foresees sales of 150,000 units in the coming period, consisting of 15,000 units of A, 75,000 units of B, and 60,000 units of C. The company's fixed costs for the period are $351,000. Read the requirements. Requirement 3. What would operating income be if 15,000 units of A, 60,000 units of B, and 75,000 units of C were sold? What is the new breakeven point in units if these relationships persist in the next period? Begin by completing the table below to calculate operating income. A B 15,000 60,000 $ 60,000 180,000 $ 75,000 150,000 Total 150,000 390,000 351,000 39,000 Units sold Contribution margin Fixed costs Operating income Now determine the new sales mix. For every 1 unit of A, 4 units of B are sold, and 5 units of C are sold. Now calculate the breakeven point in bundles for this requirement, then determine the breakeven point for each product…The Johnston Company has three product lines of beer mugs—A, B, and C—with contribution margins of $6, $5, and $3, respectively. The president foresees sales of 180,000 units in the coming period, consisting of 30,000 units of A, 90,000 units of B, and 60,000 units of C. The company's fixed costs for the period are $540,000. What is the company's breakeven point in units, assuming that the given sales mix is maintained? Begin by determining the sales mix. For every 1 unit of A, how many units of B and C are sold? If the sales mix is maintained, what is the total contribution margin when 180,000 units are sold? What is the operating income? What would operating income be if the company sold 30,000 units of A, 60,000 units of B, and 90,000 units of C? What is the new breakeven point in units if these relationships persist in the next period? Comparing the breakeven points in requirements 1 and 3, is it always better for a company to choose the sales mix that yields…
- The Austin Electric Company has three product lines of surge protectors commonly used in PC and other electronic devices - A. 8, and C-having a contribution margin of $3, $2, and $1, respectively. The president foresees sales of 200.000 units in the coming period, consisting of 20,000 units of A, 100,000 units of B, and 80.000 units of C. The company's fixed costs for the period are $255.000.(a) What is the company's break-even point in units? assuming that the given sales mix is maintained? (b) If the mix is maintained, what is the total contribution margin when 200,000 units are sold? What is operating income?(c) What would be operating income if20,000 units of A,80,000 units of B, and 100,000 units of C were sold? What is the new break-even point in units if these relationships persist in the next period?The Kenosha Company has three product lines of beer mugs—A, B, and C—with contribution margins of $5, $4, and $3, respectively. The president foresees sales of 175,000 units in the coming period, consisting of 25,000 units of A, 100,000 units of B, and 50,000 units of C. The company’s fixed costs for the period are $351,000. Q1. What is the company’s breakeven point in units, assuming that the given sales mix is maintained?The Austin Electric Company has three product lines of surge protectors commonly used in PC and other electronic devices - A, B, and C-having a contribution margin of $3, $2, and $1, respectively. The president foresees sales of 200.000 units in the coming pe riod, consisting of 200,000 units of A, 100,000 units of B, and 80.000 units of C. The company's fixed costs for the period are $255.000.(a) What is the company's break-even point in units. assuming that the given sales mix is maintained? (b) If the mix is maintained, what is the total contribution margin when 200,000 units are sold? What is operating income?(c) What would be operating income if 20,000 units of A,80,000 units of B, and 100,000 units of C were sold? What is the new break-even point in units if these relationships persist in the next period?
- The Kenosha Company has three product lines of beer mugs—A, B, and C—with contribution margins of $5, $4, and $3, respectively. The president foresees sales of 175,000 units in the coming period, consisting of 25,000 units of A, 100,000 units of B, and 50,000 units of C. The company’s fixed costs for the period are $351,000. Q. If the sales mix is maintained, what is the total contribution margin when 175,000 units are sold? What is the operating income?Fantastic Company has capacity for the production and sales of 30,000 units. Current production is 10,000 units and fixed costs are $13 per unit. If production is increased to 20,000 units, fixed costs will:Jordan Inc. manufactures Product B, incurring variable product costs of $15.00 per unit and fixed product costs of $70,000. Total Selling and Administrative Expenses for the year are expected to be $15,700. Jordan desires a profit equal to a 12% rate of return on assets, $785,000 of assets are devoted to producing Product B, and 100,000 units are expected to be produced and sold. Round all answers to two decimal places. (a) Compute the markup percentage, using the product cost concept. (b) Compute the normal selling price of Product B. (a) (b)
- Jordan Inc. manufactures Product B, incurring variable product costs of $15.00 per unit and fixed product costs of $70,000. Total Selling and Administrative Expenses for the year are expected to be $15,700. Jordan desires a profit equal to a 10% rate of return on assets, $785,000 of assets are devoted to producing Product B, and 100,000 units are expected to be produced and sold. (a) Compute the markup percentage, using the product cost concept. (b) Compute the normal selling price of Product B. (a) (b)Maverick Enterprises is planning a new product. Annual sales, unit costs, and unit revenues are as tabulated; the first cost of R&D and setting up the assembly line is $42,000. If i is 10%, what is the PW?Wayne Inc. expects to maintain the same inventories at the end of the year as the beginning of the year. The estimated fixed costs for the year are P288,000, and the estimated variable costs per unit are P14. It is expected that P60,000 units will be sold at a price of P20 per unit. Maximum sales within the relevant range are 70,000 units. Instructions: 1. What is (a) contribution margin ratio and (b) the unit contribution margin. 2. Determine the break-even points in units. 3. Construct a cost- volume- profit chart, indicating the break-even point. 4. Construct a profit- volume chart, indicating the break-even point. 5. What is the margin of safety.