What is the contribution margin per composite unit

Assignment Help Accounting Basics
Reference no: EM132504756

Question - Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and 1lI'arialJle costs for these three models are as follows:

Product

Sales Price per Unit

Variable Cost per Unit

Model 101

$275

$185

Model 201

350

215

Model 301

400

245

The current product mix for model 101:201:301 is 4:3:2. The three models share total ?xed costs of $430,000.

Requirements -

1. Calculate the sales price per composite unit.

2. What is the contribution margin per composite unit?

3. Calculate Manatoah's break-even point in both dollars and units. Calculate the break-even point for the composite unit used for the break-even analysis calculation only, as well as the "actual real" number of units of Model 101, Model 201, and Model 301.

4. Using an income statement format, prove that this is the break-even point.

Reference no: EM132504756

Questions Cloud

Discuss why a government would implement such a policy : Provide a fully labeled graphical representation of an export tax on natural resource flows from a small country that is a low cost producer
What is the margin of safety in dollars : Fire Company is a service firm with current service revenue of $900,000 and a 40% contribution margin. What is the margin of safety in dollars
Discuss the different types of performance reviews : Research different types of performance reviews and create two 175-word review forms that managers can use with their employees.
How a country balances of payment directly affect : Explain how a country's balances of payment directly affect the exchange rate.
What is the contribution margin per composite unit : The current product mix for model 101:201:301 is 4:3:2. The three models share total ?xed costs of $430,000. What is the contribution margin per composite unit
Who suffers the most from cultural lag and why : Do some research and discuss who suffers the most from cultural lag and why. What are some of the long term effects of this phenomenon?
What are some effects of technology on society today : What are some effects of technology on society today? How has this change affected organizations, behavioral patterns, or social interactions.
What are greenhouse gases : What kinds of economic challenges do these emissions pose to the people of the developing world? What are greenhouse gases
How knowledge of topic help you in your future hr career : Research a current event article related to the assigned topic. Students should focus their research on relevant HR trade publications such as HR Magazine.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd