Question

Sapphire Company produces two models of electric lawnmower. Information about Sapphire’s products is given below:


Sapphire’s fixed costs total $104,625.

Required:
1. Determine Sapphire’s weighted-average unit contribution margin and weighted-average contribution margin ratio.
2. Calculate Sapphire’s break-even units and break-even sales dollars.
3. Calculate the number of units of each product that must be sold to break even.
4. Calculate the total sales necessary for Sapphire to earn a profit of $172,305.
5. Calculate the sales revenue generated from each product line if Sapphire earns its target of $172,305 profit.
6. Calculate Sapphire’s degree of operatingleverage.


$1.99
Sales1
Views59
Comments0
  • CreatedFebruary 27, 2015
  • Files Included
Post your question
5000