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4 years ago

Campbell Company manufactures two products. The budgeted per-unit contribution margin for each product follows:

Business

1 answer:

shepuryov [24]4 years ago

5 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Super Supreme

Sales price $108 $131

Variable cost per unit (59 ) (82)

Campbell expects to incur annual fixed costs of $254,800. The relative sales mix of the products is 60 percent for Super and 40 percent for Supreme.

To calculate the break-even point in units, first, we need to calculate the weighted average selling price and weighted average variable cost:

weighted average selling price= 0.60*108 + 0.40*131= $117.2

weighted average variable cost= 0.60*59 + 0.40*82= $68.2

Now, we can calculate the break-even point:

break-even point (units)= fixed expense/ (weighted average selling price - weighted average variable cost)

break-even point (units)= 254,800/ (117.2 - 68.2)= 5,200 units

To calculate the number of each product we need to multiply the total break-even point for the participation of the sales:

Super= 5,200*0.6= 3,120 units

Supreme= 5,200*0.40= 2,080units

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Answer:

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3 years ago

Gouda Company and Cheddar Company had the same sales, total costs, and income from operations for the current fiscal year; yet G

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Answer:

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Assuming that Gouda is above break even point, each sale will generate a higher operating profit since the contribution margin is higher.

Explanation:

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3 years ago

On the first day of the fiscal year, a company issues a $4,200,000, 11%, 10-year bond that pays semiannual interest of $231,000

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Explanation:

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3 years ago

Higher debt utilization ratios will always increase a firm's return on equity given a positive return on assets.

Nikitich [7]

Answer:

A. True

Explanation:

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