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IgorLugansk [536]
3 years ago
5

Bramble Corp. has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear

. Bramble incurs $8510000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. What will sales be for the Sporting Goods Division at the break-even point?
Business
1 answer:
Dima020 [189]3 years ago
3 0

Answer:

The break even in dollars is $23000000

Explanation:

The break even point in dollars is the amount of revenue which produces no profit or no loss and where total revenue equals total cost. The break even in dollars is calculated by dividing the fixed cost by the weighted average contribution margin ratio.

Break even in dollars = Fixed costs / Weighted average contribution margin ratio

Weighted average contribution margin ratio is the contribution margin ratio of each products multiplied by the products weight in the sales mix.

Weighted average contribution margin ratio = Weight in sales mix of Product A * contribution margin ratio of product A + Weight in sales mix of Product B * Contribution margin ratio of Product B

Weighted average contribution margin ratio = 0.65 * 0.3 + 0.35 * 0.5  = 0.37

Break even in dollars = 8510000 / 0.37

Break even in dollars = $23000000

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5 0
1 year ago
To fund your dream vacation, you plan to save $1,475 per year for the next 15 years starting one year from now. If you can earn
muminat

Answer:

FV= $34,993.05

Explanation:

Giving the following information:

Annual deposit= $1,475

Number of periods= 15 years

Interest rate= 6.25%

<u>To calculate the future value, we need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

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3 0
3 years ago
What is the major difference between the unadjusted trial balance and the adjusted trial balance?
11Alexandr11 [23.1K]

Answer:

The correct answer is Option a. The adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts.

Explanation:

The trial balance is a summary of all the account balances for an organization, usually spooled at the end of the year. The possibility exist that transaction that occurred during the year are not captured, accurately or properly recorded in the books. When the company's financial statements are reviewed at the end of the year, adjustments may be made to the unadjusted trial balance to include transactions previously not recorded, accurately or properly captured in the books of accounts.

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5 0
3 years ago
Read 2 more answers
Village East expects to pay an annual dividend of $1.40 per share next year, and $1.68 per share for the following two years. Af
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Answer:

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Explanation:

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As we know that:

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2. Choice (a) is correct. The management has three tools to use in case of disagreement. These are an injunction, lockout, and hiring replacement workers. An injunction is a judicial order telling the person from doing so. A lockout is a temporary work stoppage or denial of employment. Hiring replacement workers simply mean looking for another competent worker that can do the job of the vacated position.

4 0
3 years ago
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