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belka [17]
3 years ago
5

To find the break-even point for a company that sells several products, the analyst must make an assumption about what the sales

mix will be and calculate a weighted average contribution margin based on that sales mix.a. True or b. False
Business
1 answer:
leva [86]3 years ago
7 0

Answer:

True because in the case if the the company is producing single product then the method is simple. If the company is making number of products we have to assume a sales mix to calculate breakeven point. Reaching breakeven point is not easy in multi products case. To calculate breakeven point we have to calculate weighted average contribution per unit to put the values in the following formula:

Breakeven point (units) = Fixed cost/ weighted average cost per unit

You might be interested in
Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $23,490 and variable exp
Mars2501 [29]

Answer:

Contribution margin ratio = Contribution margin / Sales

Product C90B CMR = ($23,490 - $7,047) / $23,490 = $16,443 / $23,490 = 0.7 = 70%

Product Y45E CMR = ($34,800 - $13,920) / $34,800 = $20,880 / $34,800 = 0.6 = 60%

The rule, <em>the Higher the contribution margin ratio, the lower the Break-Even point. </em>So, if sales mix shifts to product C90B, overall Break-even point <u>Decreases</u>.

8 0
3 years ago
Lynette Company's Inventory balance at 12/31/04 was $200,000 and was $188,000 at 12/31/05. Its Accounts Payable balance e at 12/
Viefleur [7K]

Answer:

A) $704,000.

Explanation:

For computing the cash payments we need to calculate the following amounts which are as follows

Total purchases = cost of goods sold + ending inventory - opening inventory

= $720,000 + $188,000 - $200,000

= $708,000

Now cash payment to merchandise is

= Beginning account payable balance + purchased made - ending account payable balance

= $80,000 + $708,000 - $84,000

= $704,000

Hence, the correct option is A. $704,000

3 0
3 years ago
SWOT analysis is a method of determining external strengths and weaknesses and internal opportunities and threats. True False
Kamila [148]

Answer:

False

Explanation:

SWOT analysis is a method of determining external strengths and weaknesses and internal opportunities and threats is a FALSE statement. SWOT analysis means

Strength

Weakness

Opportunities

Threat

Strength and weaknesses are the internal factors not external ones, strength and weakness comes from inside of the organisation. Any organisation capability to serve the customers well, having red hot selling products, creative employees can be its strength. If these elements are not performing well, they can become the weakness as well, therefore, SW is related with the internal environment of the organisation.

In the same way, opportunities and threats are posed by the outside environment, they are not internal elements and factors. Political, social, technological and legal environment can create both treat as well new and exciting opportunities for the organization.

3 0
3 years ago
Maintaining ___________ involves producing what the customer wants while reducing errors before and after delivery to the custom
morpeh [17]
Maintaining quality involves producing what the customer wants while reducing errors before and after delivery to the customer. 
4 0
3 years ago
The following is a partially completed departmental expense allocation spreadsheet for Brickland. It reports the total amounts o
Ilia_Sergeevich [38]

Answer:

$8,319

Explanation:

Computation for the amount of Maintenance department expense to be allocated to Fabrication

First step is to calculate the total sum of square foot space

Using this formula

Total sum of square foot space = Fabrication square foot space + assembly square foot space

Let plug in the formula

Total sum of square foot space= 3,450 + 2,500

Total sum of square foot space= 5,950

Now let calculate the amount of Maintenance department expense to be allocated to Fabrication

Maintenance department expense = $ 19,800 × 2,500 ÷ 5,950

Maintenance department expense = $ 19,800 × 0.42017

Maintenance department expense = $8,319

Therefore the amount of Maintenance department expense to be allocated to Fabrication is $8,319

8 0
3 years ago
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