llery Corporation makes two products, footb
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Gallery Corporation makes two products, footballs and baseballs. Additional information follows:
Footballs | Baseballs | |||||
Units | 2,000 | 2,500 | ||||
Sales | $60,000 | $25,000 | ||||
Variable costs | 24,000 | 13,750 | ||||
Fixed costs | 10,000 | 5,250 | ||||
Net income | $26,000 | $6,000 | ||||
Yards of leather per unit | 1.25 | 0.30 | ||||
Profit per unit | $13.00 | $2.40 | ||||
Contribution margin per unit | $18.00 | $4.50 |
Assume that Gallery is able to order an additional 2,500 yards of leather and wishes to maximize its income. Of the additional units it produces, at least 500 of each product are necessary for sales.
How many units of each must be produced?
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- Bramble Corporation makes two products, footballs and baseballs. Additional information follows: Footballs Baseballs Units 2,000 2,500 Sales $144,000 $60,000 Variable costs 57,600 33,000 Fixed costs 24,000 12,600 Net income $62,400 $14,400 Yards of leather per unit 1.25 0.30 Net income per unit $31.20 $5.76 Unit contribution margin $43.20 $10.80 Assume that Bramble is able to order an additional 4,000 yards of leather and wishes to maximize its net income. Of the additional units it produces, at least 800 of each product are necessary for sales. How many units of each must be produced? (Round contribution margin per yard to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 5,275.) Units produce Footballs BaseballsAyayai Corporation makes two products, footballs and baseballs. Additional information follows: Footballs Baseballs Units 2,000 2,500 Sales $48,000 $20,000 Variable costs 19,200 11,000 Fixed costs 8,000 4,200 Net income $20,800 $4,800 Yards of leather per unit 1.25 0.30 Net income per unit $10.40 $1.92 Unit contribution margin $14.40 $3.60 Assume that Ayayai is able to order an additional 2,000 yards of leather and wishes to maximize its net income. Of the additional units it produces, at least 400 of each product are necessary for sales. How many units of each must be produced? (Round contribution margin per yard to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 5,275.)Anna Inc. sells two products as follows: Product A Product B Units sold 3,800 4,750 Selling price per unit $300 $450 Variable costs per unit $120 $270 The company has the following fixed costs: Product A, $613,000, Product B, $1,023,000, and common fixed costs of $372,800. Using the above information answer the following questions. What is the package contribution margin? HINT: this is a dollar value so please round to the nearest penny. What is the break-even in packages? How many units of Product A are required to break-even? How many units of Product B are required to break-even?
- YZ Manufacturing Company produces two products, Y and Z. The following information is presented for both products: Y Quantity sold 2,500 7,500 Selling price per unit $50 $20 Variable cost per unit 5 20 Total fixed costs are $150,000. What is the breakeven point in units of both Y and Z respectively? NIAnna Inc. sells two products as follows: Product A Product B Units sold 3,800 4,750 Selling price per unit $300 $450 Variable costs per unit $120 $270 The company has the following fixed costs: Product A, $613,000, Product B, $1,023,000, and common fixed costs of $372,800. Using the above information answer the following questions. What is the package contribution margin? What is the break-even in packages? How many units of Product A are required to break-even? How many units of Product B are required to break-even?Salvadores Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Product Selling Priceper Unit Variable Costper Unit Snowboards $310 $180 Skis $410 $210 Poles $50 $20 Their sales mix is reflected in the ratio 7:4:2. What is the overall unit contribution margin for Salvadores with their current product mix? Overall Unit Contribution Margin $fill in the blank 1
- Craylon Manufacturing Company produces two products, X and Y. The following information is presented for both products: X Y Selling price per unit $40 $25 Variable cost per unit 25 15 Total fixed costs are $275,000.Required:a. Calculate the contribution margin for each product.b. Calculate breakeven point in units of both X and Y if the sales mix is 3 units of X for every unit of Y.c. Calculate breakeven volume in total dollars if the sales mix is 2 units of X for every 3 units of Y.Mountain Technical manufactures mountaineering tents. It has fixed costs of $8,280,000. Mountain Technical's unit cost and sales data is shown as follows: Ranier Shasta Whitney Model Model Model Unit sales price $300 $400 $500 Unit variable costs $260 $340 $380 Units sold 48,000 72,000 40,000 What is the weighted-average unit contribution margin? A. $220 B. $57 C. $73 D. $69 Determine the number of units of each model that the company must sell to break even: Group of answer choices A. Ranier - 36,000 units; Shasta - 54,000 units; Whitney –…Ivanhoe Company makes three models of tasers. Information on the three products is given below. Tingler Shocker Stunner Sales $296,000 $504,000 $200,000 Variable expenses 151,100 203,300 138,600 Contribution margin 144,900 300,700 61,400 Fixed expenses 116,616 228,184 93,900 Net income $28,284 $72,516 $(32,500) Fixed expenses consist of $296,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $29,000 (Tingler), $79,000 (Shocker), and $34,700 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out.James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company’s net income.(a)Compute current net income for Ivanhoe Company. Net income $ (b)Compute net income by product line…
- Sandhill Company makes three models of tasers. Information on the three products is given below. Tingler Shocker Stunner Sales $296,000 $504,000 $200,000 Variable expenses 151,700 207,900 138,200 Contribution margin 144,300 296,100 61,800 Fixed expenses 117,800 231,800 95,000 Net income $26,500 $64,300 $(33,200) Fixed expenses consist of $300,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $29,000 (Tingler), $80,600 (Shocker), and $35,000 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out. James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income. (a) Compute current net income for Sandhill Company. Net income AZiggy Creations makes and sells a single product. Individual product details are as follows: Selling price $ 45 Direct materials $20 Direct labour $10 Fixed Costs $480 000 Estimated sales 36 000 units Production capacity 40 000 units a) Calculate the contribution margin per unit. b) Calculate the breakeven point in units. c) Calculate the expected profit from the estimated sales. d) If Ziggy’s required a profit of $90 000, what level of sales dollars would be required? e) Variable costs are to increase by $5 per unit. If Ziggy’s wants to maintain a profit of $90,000, what will be the required sales volume? Can Ziggy’s achieve this new estimated sales volume?The XYZ Company produces and sells two products: The Riffs and The Raffs. Below is revenue and cost information to facilitate the development of a basic segmented income statement. Product Riffs Raffs Sales Price per unit $8.00 6.00 Variable Cost per unit $3.20 3.00 Traceable Fixed Costs $62,000 $44,000 It is expected that the company will incur $21,000 of common fixed expenses and unit sales are expected to be 12,000 of Riffs and 18,000 of Raffs. Required: Construct a Contribution Format Income Statement segmented by product line and company total.