What is the companys breakeven point

Reference no: EM132460847

Assignment:

Sales mix, three products. The Ronowski Company has three product lines of belts-A, B, and C- with contribution margins 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.

Required:

Question 1. What is the company's breakeven point in units, assuming that the given sales mix is maintained?

Question 2. If the sales mix is maintained, what is the total contribution margin when 200,000 units are sold? What is the operating income?

Question 3. What would operating income be if 20,000 units of A, 80,000 units of B, and 100,000 units of C were sold? What is the new breakeven point in units if these relationships persist in the next period?

CVP analysis, margin of safety.

Suppose Doral Corp.'s breakeven point is revenues of $1,100,000. Fixed costs are $660,000.

Question 1. Compute the contribution margin percentage.

Question 2. Compute the selling price if variable costs are $16 per unit.

Question 3. Suppose 95,000 units are sold. Compute the margin of safety in units and dollars

Flexible-budget preparation and analysis.

Bank Management Printers, Inc., produces luxury checkbooks with three checks and stubs per page. Each checkbook is designed for an individual customer and is ordered through the customer's bank. The company's operating budget for September 2012 included these data: Number of checkbooks      15,000
Selling price per book        $ 20
Variable cost per book     $ 8
Fixed costs for the month    $145,000

The actual results for September 2012 were as follows:

Number of checkbooks produced and sold ....12,000
Average selling price per book $ 21
Variable cost per book $ 7
Fixed costs for the month $150,000

Required:

Question 1. Prepare a static-budget-based variance analysis of the September performance.

Question 2. Prepare a flexible-budget-based variance analysis of the September performance

Reference no: EM132460847

Questions Cloud

What was social darwinism : How did the United States go from a technological borrower to a technological innovator in the second half of the nineteenth century?

Eliminate or control creative destruction : What did OPEC do (or could have done) to effectively eliminate or control creative destruction?

Economic example of positive and normative statements : Do you think that this statement entails a positive element, a normative element or both? why? can you give any economic example of positive and normative state

What motivated the widespread movement : What motivated this widespread movement, and what would you identify as the major contributions of these immigrants after they arrived in the U.S.?

What is the companys breakeven point : What is the company's breakeven point in units, assuming that the given sales mix is maintained and What would operating income be if 20,000 units.

Explain the money multiplier : Explain the money multiplier and why the actual multiplier will be less than the theoretical maximum.

Deciding between developing complicated : Transcendent Technologies is deciding between developing complicated, thought-activated software, or simple, voice-activated software.

What is the value of cpi after the acquisition : Neither firm has any debt. The synergy value of the acquisition is R18 000. What is the value of CPI after the acquisition?

Discuss about typhoid mary and on woolworth lunch counter : "Typhoid Mary" and "On Woolworth lunch counter" Are these two issues the same? In the case of Typhoid Mary, do you think the Federal government

User Account

All Pages