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skad [1K]
3 years ago
7

Bobby Company has fixed costs of $160,000. The unit selling price, variable cost per unit, and contribution margin per unit for

the company's two products are provided below. Product Selling Price per Unit Variable Cost per Unit Contribution Margin per Unit X $180 $100 $80 Y 100 60 40 The sales mix for product X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y. Round answer to nearest whole number. units
Business
1 answer:
V125BC [204]3 years ago
3 0

Answer:

1,500 units; 1,000 units

Explanation:

Break Even Point (in units) = Fixed cost ÷ Contribution margin per unit

Fixed cost = $160,000

Sales Mix = 60% of X + 40% of Y

                = 0.6X + 0.4Y

So,

Contribution Margin of the Mix:

= (60% × contribution margin of X) + (40% × contribution margin of Y )

Contribution Margin of the Mix per unit:

= (60% × 80) + (40% × 40)

= 48 + 16

= $64

Break Even Point (in units) = Fixed cost ÷ Contribution margin per unit  

                                            = 160,000 ÷ 64

                                            = 2,500 unit

At the Level of break even :

Unit of X at break-even:

= 60% of 2,500

= 1,500 units

Unit of Y at break-even:

= 40% of 2,500

= 1,000 units

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2 years ago
When the seller requires that only certain dealers carry its products and also that these dealers not handle competitors' produc
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exclusive dealing

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Exclusive dealing -

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3 years ago
"Bubba is a shrimp fisherman who used $2,000 from his personal savings account to buy a boat and equipment for his shrimp busine
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B. $200

C. $40

D. $400

Answer:C. $40

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3 years ago
Chae Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the firs
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Answer:

If costs and percentage completion of these units in beginning inventory were:

Cost Percent Complete

Materials costs $7,900 60%

Conversion costs $6,900 30%

A total of 8,100 units were started and 7,600 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

Materials costs $137,900

Conversion costs $323,900

The ending inventory was 80% complete with respect to materials and 75% complete with respect to conversion costs.

Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

The cost per equivalent unit for materials for the month in the first processing department is closest to $17.03

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But in this case, since you have unfinished units, you must take the equivalent to calculate the unit cost.

Materials:

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Units in process: 1,200 * 80% = 960

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Total cost: 7900 + 137,900 = 145,800

So: 145,800 / 8,560 = 17.03 is the equivalent unit cost per product

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