1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
NeX [460]
3 years ago
9

Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: ho

w-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 DVDs and 4,500 equipment sets. Information on the two products is as follows: DVDs Equipment Sets Price $8 $25 Variable cost per unit 4 15 Total fixed cost is $86,100. Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale to health clubs. The company estimates that 9,000 mats can be sold at a price of $21 and a variable cost per unit of $12. Total fixed cost must be increased by $28,700 (making total fixed cost $114,800). Assume that anticipated sales of the other products, as well as their prices and variable costs, remain the same.1. What is the sales mix of DVDs, equipment sets, and yoga mats?3:1:22. Compute the break-even quantity of each product.a.Break-even DVDs unitsb.Break-even equipment sets unitsc.Break-even yoga mats unitsd.Feedback1. See text section "Determining the Sales Mix."2. See Cornerstone 4.7.Learning Objective 1 and Learning Objective 5.3b. What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. (Note: Round the contribution margin ratio to the nearest whole percent; round the break-even sales revenue to the nearest dollar.)Overall contribution margin ratio %Overall break-even sales revenue $ 4. Compute the margin of safety for the coming year in sales dollars.$
Business
1 answer:
zmey [24]3 years ago
4 0

Answer:

Answer 1.

DVD Equipment Set Yoga Mat

Sale in Units 13500 4500 9000

Sale Mix 3 1 2

Sales Mix Ratio = 3:1:2

Answer 2.

Let the Break Even Sales = X Units

Therefore, Linear equation of BEP:

3/6 X (8-4) + 1/6 X (25-15) + 2/6 X (16-9) = 119520 (Fixed Costs)

X = 19920 Units

BEP of

DVD = 19,920 Units X 3/6 = 9960 Units

Equipment Set = 19,920 Units X 1/6 = 3320 Units

Yoga Mat = 19920 Units X 2/6 = 6640 Units

Answer 3.

DVD Equipment Set Yoga Mat Total

Sale in Units 13,500 4,500 9,000 27,000

SP 8 25 16

Sales in $ 108,000 112,500 144,000 364,500

Less: Variable Costs 54,000 67,500 81,000 202,500

Contribution 54,000 45,000 63,000 162,000

Contribution Margin Ratio 50.00% 40.00% 43.75% 44.44%

Contribution Margin Ratio = Contribution / Sales

Overall Break Even Sales Revenue = $119520 (Fixed Costs) / 44.44% (Contribution Margin Ratio)

Overall Break Even Sales Revenue = $268,920

Answer 4.

Margin of Safety = Sales - BES

Margin of Safety = $364,500 - 268920 = $95,580

Explanation:

You might be interested in
An office management firm has developed a system for efficiently organizing small medical and dental practices both through prop
kolbaska11 [484]

Answer:

achieve economies of scope

Explanation:

Economies of scope  -

It is the concept in economics , which is the reduction in the total cost of the production , when some products are produced collectively rather than individually , is known as economies of scope .

Same case is given in the question , where the management have organised medical and dental practices via some unique training program for the staff .

4 0
3 years ago
What global market-entry strategy did mary kay use when it entered india?
sdas [7]

The global market entry strategy that Mary Kay used when it entered India was the exporting market entry strategy. The priorities of Mary Kay when doing business was God first, family second and career third. In India however it was adapted that faith first, family second and career third.  Mary Kay does this for the purpose of the religion and for the sake of respecting those who practice their religions.


8 0
3 years ago
Read 2 more answers
Marketing ________ sports involves the strategic marketing efforts of companies in which they partner with a sports entity for s
melamori03 [73]

'Marketing through sports involves the strategic marketing efforts of companies in which they partner with a sports entity for some commercial benefit.

Marketing strategy is the process that enables a company to focus its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.

Marketing activities are the resources companies spend to promote their products and services. Through marketing activities, businesses can generate demand and interest in their products and increase awareness among potential customers.

marketing strategy helps you discover areas that will be impacted by business growth, thereby helping you create organizational plans that address customer needs. It helps organizations appropriately price their goods and services based on information gathered through market research.

Learn more about Marketing strategy brainly.com/question/25640993

#SPJ4

6 0
2 years ago
Depreciation is a _____, a cost that cannot be affected by any future action.
stiks02 [169]
<span> <span><span>Depreciation is a </span>sunk cost. </span></span>It is the value lost on an asset after consumption. In accounting, depreciation cost qualifies as a sunk cost because it is already lost and cannot be recovered. For that reason, it is correct to ignore depreciation cost when determining the future course of a business.
7 0
3 years ago
Read 2 more answers
The account Unrealized Gain (Loss) on Available-for-Sale Investments should be included on the a.statement of retained earnings
Feliz [49]

Answer: b.balance sheet as an adjustment to stockholders' equity

Explanation:

Available-for-Sale Investments are investments by the company into other companies by means of owning their bonds or stocks. These bonds or stock are made available for selling and as such the company will not hold them to maturity.

For these types of instruments, the company will record the Unrealized Gains (losses) in Other Comprehensive Income. This is a part of the Equity Section of the balance sheet.

At the end of the period, the Unrealized Gains (losses) resulting from the Available for Sale Securities do not go to the income statement but rather are put into the Accumulated Other Comprehensive Income distinction in the Equity section of the balance sheet. You can find it right below the Retained Earnings line.

8 0
3 years ago
Read 2 more answers
Other questions:
  • Industries are defined by _____.
    11·2 answers
  • 3. Ashley, Nikki and Jared all selected identical new cars at the same price. Ashley, bought the car with some of his own money
    12·2 answers
  • A software firm has an opening for a software programmer. Jason, the HR manager, is making a list of all the tasks, duties, and
    6·1 answer
  • The ________________ desires to find a solution to a social problem rather than to simply earn profits.
    7·1 answer
  • Strieby Corp. operates a business with three separate entities as subsidiaries that operate as a unitary business: Matty Corp.,
    12·1 answer
  • Questionnnnnnnnn helppppp
    8·1 answer
  • Shiny Industries producers of crab meat can issue perpetual preferred stock at a price of $31.86 per share. The stock would pay
    15·1 answer
  • Oakland Tax Planning Service bought computer equipment for on January​ 1, 2018. It has an estimated useful life of four years an
    13·1 answer
  • A company sells 500 sleds per month for $80. Variable costs are $41 per unit and fixed expenses are $3,500 per month. The compan
    8·1 answer
  • 3. during the 1980s and 1990s, managing the transportation function in supply chains was recognized as being important but not c
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!