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elena-14-01-66 [18.8K]
3 years ago
13

Following is the information about Eclypso Company's two products: Product X Product Y Unit selling price $10.00 $10.00 Unit var

iable costs: Manufacturing $ 6.00 $ 7.00 Selling 1.00 1.00 Total variable costs $ 7.00 $ 8.00 Monthly fixed costs are as follows: Manufacturing $ 90,000 Selling and administrative 50,000 Total fixed costs $140,000 What is the total monthly sales volume in units required to break even when the sales mix in units is 80% of Product X and 20% of Product Y?
Business
1 answer:
xz_007 [3.2K]3 years ago
5 0

Answer:

50,000  units are required to break even

Explanation:

Eclypso Company

                                        Product X        Product Y

Unit selling price               $10.00               $10.00

Less

Unit variable costs:

Manufacturing                     $ 6.00            $ 7.00

Selling                                   1.00                 1.00

Total variable costs              $ 7.00            $ 8.00

Contribution Margin per unit  3                   2          

Monthly fixed costs are as follows:

Manufacturing                               $ 90,000

Selling and administrative             50,000

Total fixed costs                           $140,000

Weighted Contribution Margin per unit =  ($3 *  80% + $ 2 * 20%)= 2.4+ 0.4=              

                                                                                $ 2.8

Combined Break Even Volume = Fixed Costs/ Weighted Contribution Margin Per unit

Combined Break Even Volume = $ 140,000/ 2.8=50,000

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8 0
2 years ago
Sabv Corporation's break-even-point in sales is $840,000, and its variable expenses are 75% of sales. If the company lost $34,00
zhuklara [117]

Answer:sales must have amounted to:$704,000

Explanation:

Contribution ratio = Sales ratio - Variable cost ratio

= 100%- 75%

=25%

Sales to break even = Fixed expenses / Contribution margin ratio

Therefore,

 Fixed expenses = Sales to break even   x  Contribution margin ratio

=$840,000 x 25%

=$210,000

Contribution margin can also be calculated as

Fixed expenses- Operating loss

=$210,000 -$34,000

=$176,000

Sales = Contribution margin/ Contribution ratio

= $176,000/25% =$704,000

5 0
2 years ago
Which of the following is NOT a benefit of safety and health programs?
vladimir1956 [14]
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7 0
3 years ago
Read 2 more answers
The information needed to make the journal entries to record the wages and salaries expense comes from
babymother [125]
The answer is The Payroll Register.
5 0
3 years ago
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eriod costs ________. should be treated as an indirect cost rather than as a direct manufacturing cost seldom influence financia
Serhud [2]

Answer:

include the cost of selling, delivering, and after-sales support for customers

Explanation:

The period cost is the cost which includes the major part of the selling and admin expenses plus it is also not capitalized and can be incurred according to the passage of time

So as per the given situation, the third option is correct as it includes the selling, delivering cost and after sales support

Therefore all the other options are wrong

6 0
3 years ago
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