Sales Mix and Break-Even Sales
Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $468,000, and the sales mix is 60% bats and 40% gloves. The unit selling price and the unit variable cost for each product are as follows:
|Products||Unit Selling Price||Unit Variable Cost|
a. Compute the break-even sales (units) for
both products combined.
b. How many units of each product, baseball bats and baseball gloves, would be sold at break-even point?
Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year (in millions of dollars):
|Cost of goods sold||$18,756|
|Selling, general and administration||12,999|
|Income from operations||$15,308*|
|*Before special items|
In addition, assume that Anheuser-Busch InBev sold 400 million barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 50% of selling, general and administration expenses. Assume that the remaining costs are fixed. For the following year, assume that Anheuser-Busch InBev expects pricing, variable costs per barrel, and fixed costs to remain constant, except that new distribution and general office facilities are expected to increase fixed costs by $300 million.
When computing the cost per unit amounts for the break-even formula, round to two decimal places. If required, round your final answer to one decimal place.
a. Compute the break-even number of barrels for
the current year.
b. Compute the anticipated break-even number of
barrels for the following year.
a. Yountz Company budgets sales of $960,000,
fixed costs of $17,300, and variable costs of $76,800. What is the
contribution margin ratio for Yountz Company? (Enter your answer as
a whole number.)
b. If the contribution margin ratio for Vera
Company is 55%, sales were $583,000, and fixed costs were $234,070,
what was the income from operations?
Break-Even Sales and Sales to Realize Income from Operations
For the current year ending October 31, Yentling Company expects fixed costs of $694,400, a unit variable cost of $64, and a unit selling price of $96.
a. Compute the anticipated break-even sales
b. Compute the sales (units) required to
realize income from operations of $160,000.
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