You are the Chief Accountant of Image Selfie Sticks Company. A small company that sells throughout the
Question:
You are the Chief Accountant of Image Selfie Sticks Company. A small company that sells throughout the Caribbean. The products are (1) Retractable Selfie Sticks and (2) Standard Selfie Sticks. The company’s April 2022 sales and expenses are shown below:RetractableStandardSales$20,000$80,000Variable Costs$15,000$40,000No. Memorabilia sold2001000Sales Mix20%80%Monthly Fixed costs are $37,000.
Required:
a. Compute the contribution margin per unit for each product. (3 Marks)
b. Compute the weighted average contribution margin per unit. (3 Marks)
c. Compute the break-even point in units for the company. (3 Marks)
d. Compute the contribution margin ratio of each product. (3 Marks)
e. Compute the weighted average contribution ratio. (3 Marks)
f. Compute the break-even point in dollars for the company. (3 Marks)
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn