Biblio Files Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Basic and Deluxe. The company
Biblio Files Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Basic and Deluxe. The company has compiled the following estimates for the new product offerings. Type of Bookshelf
Sales Price per Unit Variable Cost per Unit
Basic $5.00 $1.75
Deluxe $9.00 $8.10
The company is interested in determining how many of each type of bookshelf would have to be sold in order to break even. If we think of the Basic and Deluxe products as components of one overall enterprise product called “Combined,” the unit contribution margin for the Combined product would be $2.31. Fixed costs for the upcoming year are estimated at $346,962. Recall that the totals of all the sales mix percents must be 100%. Determine the amounts to complete the table below. Type of Bookshelf
Basic Deluxe
Percent of Sales Mix = ? ?
Break-Even Sales in Units = ? ?
Break-Even Sales in Dollars = ? ?
Step by Step Solution
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1computation of percent of sales mix Here the units are not given so we need to compute it first as ... View full answer
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Managerial Accounting An Introduction to Concepts Methods and Uses
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
10th Edition
1111822239, 324639767, 9781111822231, 978-0324639766
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