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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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lorasvet [3.4K]

Answer:

Depletion expenses for the first year is $210736.840

Explanation:

Depletion expenses= (Cost of coal mine - residual value) / Total tons of coal * tons extracted

=(1,001,000 - $0) / 57,000 tons * 12,000 tons

=$210736.8421

=$210736.840

6 0
3 years ago
Lauren makes $150 a day as a bank clerk. she takes two days off work without pay to fly to another city to attend the concert of
Juli2301 [7.4K]
The two days Lauren doesn't receive pay would be $150 × 2 = $300
Add on the cost of transportation & lodging: $300 + $250 = $550
Finally, add the cost of the concert ticket: $550 + $50 = $600

The opportunity cost of Lauren's decision to attend the concert is $600.
8 0
3 years ago
PLEASE HELP FAST How does Wallach relate the future to a part of speech? Explain.
Feliz [49]

Answer:

Wallach describes  three ways of thinking :  

  • T<u>ransgenerational thinking</u>: It helps us to think about our problems and the ways in which you can resolve them ,and what will be the future consequence of your thinking.

  • <u>Futures thinking:</u> Wallach advocated the fact that   we should just not think about the future in one single perspective rather we should open our mind about various future perspectives.

  • <u>Telos thinking:</u>The word Telos comes from a greek word which means :Ultimate aim".One should think that what will happen next once a particular problem is solved

Wallach relate the future to a part of speech establishing a link between Thomas Khun quote: “People don’t shift unless they have a vision of what it is they’re shifting to.” and  Martin Luther King Speech of "I Have a Dream" he says that that speech is successful as it shows what his dream and what will come after the dream is accomplished

6 0
3 years ago
Cost of​ equity: SML. Stan is expanding his business and will sell common stock for the needed funds. If the current​ risk-free
AysviL [449]

Answer:

a.

The cost of equity is 10% if beta is 0.75

b.

The cost of equity is 11.20% if beta is 0.9

c.

The cost of equity is 12.40% if beta is 1.05

d.

The cost of equity is 13.60% if beta is 1.2

Explanation:

The SML approach is used to calculate the required rate or return (r) which is the minimum return that the investors require to invest in a company's stock. This is also referred to as the cost of equity. The formula for required rate of return under SML is,

r = rRF + Beta * (rM - rRF)

Where,

  • rRF is the risk free rate
  • rM is the return on Market

a.

r = 0.04 + 0.75 * (0.12 - 0.04)

r = 0.10 or 10%

b.

r = 0.04 + 0.9 * (0.12 - 0.04)

r = 0.112 or 11.20%

c.

r = 0.04 + 1.05 * (0.12 - 0.04)

r = 0.124 or 12.40%

d.

r = 0.04 + 1.2 * (0.12 - 0.04)

r = 0.136 or 13.60%

8 0
4 years ago
You should not use the PACED decision-making process to make career choices. It should mostly be used for financial decisions.
marusya05 [52]
I believe the statement given is false. PACED decision-making process is useful in making career choices. <span>The </span>PACED<span> Decision-Making </span>model<span> provides for students to be actively involved in the decision-making process. Hope this helps.</span>
3 0
3 years ago
Read 2 more answers
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