Assume that Company Z, which sells two products, has changed its sales mix so that it sells a higher proportion of the product with the higher CM. What will be the impact on the break-even level of sales? Explain your answer.
Answer to relevant QuestionsWhere is the break-even point on a CVP graph? Super Sales Company is the exclusive distributor for a high-quality knapsack. The product sells for $60 per unit and has a CM ratio of 40%. The company’s fixed expenses are $360,000 per year. The company plans to sell ...Klein Company distributes a high-quality bird feeder that sells for $30 per unit. Variable costs are $12 per unit, and fixed costs total $270,000 annually. Required: Answer the following independent questions: 1. What is the ...In March, Mitchell Limited had sales of $250,000 (50,000 units), total variable expenses of $190,000, and total fixed expenses of $36,000. Required: 1. What is the company’s CM ratio? 2. Using the CM ratio, calculate the ...Entergo Company installs home theatre systems. The company’s most recent monthly contribution format income statement appears below: Required: 1. Compute the company’s degree of operating leverage. 2. Using the degree of ...
Post your question