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kogti [31]
3 years ago
13

Sales Mix and Break-Even Analysis Michael Company has fixed costs of $2,313,840. The unit selling price, variable cost per unit,

and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $640 $380 $260 ZZ 460 280 180 The sales mix for Products QQ and ZZ is 85% and 15%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product QQ units b. Product ZZ units
Business
1 answer:
Fed [463]3 years ago
5 0

Answer:

a.

Break even in units of QQ is 7930 units

b.

Break even in units of ZZ is 1400 units

Explanation:

To calculate the break even in units of each product, we first need to find out the overall break even point in units for the company. The over all break even point in units for a two product company is,

Overall Break even in units =  Total Fixed costs / Weighted average contribution margin per unit

Where,

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

Weighted average CM per unit = 0.85 * 260 + 0.15 * 180

Weighted average CM per unit = $248 per unit

Over all break even in units = 2313840 / 248     =  9330 units

a.

Break even in units Product QQ = 9330 * 0.85 = 7930.5 rounded off to 7930 units

b.

Break even in units Product ZZ = 9330 * 0.15 = 1399.5 rounded off to 1400 units

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Cost of machine = $1,000

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NPV of salvage value = FV ( \frac{1}{ (1+RoR)^{n} } )= 100( \frac{1}{ (1+0.1)^{3} } ) = $75.13

Total NPV = -1000+1492.11+75.13 = $567.24 ≈ $567
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3 years ago
Read the following email, which Jim sent to his team. Then choose the answer below that best explains what is wrong with the ema
mars1129 [50]

Answer and Explanation:

The subject of the email is too long and contains all the information. The subject should have been: Proposal draft due on Friday. Rest of the information should have been included in the body of the email.

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3 years ago
Which term describes a category of attacks that generally are conducted over short periods of time (lasting at most a few months
Advocard [28]

Complete Question:

Which term describes a category of attacks that generally are conducted over short periods of time (lasting at most a few months), involve a smaller number of individuals, have little financial backing, and are accomplished by insiders or outsiders who do not seek collusion with insiders?

Group of answer choices.

A. Critical infrastructure category

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D. Structured threat category

Answer:

B. Unstructured threat category.

Explanation:

An unstructured threat category is a term which describes a category of attacks that generally are conducted over short periods of time (lasting at most a few months), involve a smaller number of individuals, have little financial backing, and are accomplished by insiders or outsiders who do not seek collusion with insiders.

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3 years ago
Different companies across different industries adopt any one of the five generic strategies to gain competitive advantage.
enyata [817]

Answer:

c. An online retailer delivers organic groceries overnight.

Explanation:

As Different companies in different industries follow any one of the five general strategies to gain competitive advantage.

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so correct option is c. An online retailer delivers organic groceries overnight.

6 0
3 years ago
Brewco sells coffee makers for $120 each. the firm currently has variable costs per unit of $65. if brewco is able to reduce its
zhannawk [14.2K]
Contribution margin is calculated via subtracting the variable cost per unit to the sales price per unit. In equation, we have

Contribution margin = Sales Price - Variable Cost

Contribution margin ratio is calculated via dividing the contribution margin with the sales price. In equation, we have

Contribution margin ratio = contribution margin/sales price

Substituting the given values,
Contribution margin ratio for 65$ variable cost = (120-65)/120 = 0.4583 
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<em>ANSWERS: 0.4583 or 45.83% and 0.5167 or 51.67%</em>

8 0
3 years ago
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