Bison Company manufactures and sells a number of yarn products. Bison Co. is contemplating the future...
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Bison Company manufactures and sells a number of yarn products. Bison Co. is contemplating the future of XT, a special yarn used in many elementary schools for art projects, that has not been as profitable as planned. Since XT is manufactured and sold separately of the other products Bison manufactures, its total costs can be precisely measured. Plans for the next year call for a $190 selling price per 100 yards of XT yarn (1 unit). Bison's fixed costs for the year are expected to be $334,400, up to a maximum capacity of 550,000 yards of yarn. Forecasted variable costs are $114 per 100 yards of XT yarn. 1. Estimate XT's break-even point in terms of sales units and sales dollars. (Remember 1 unit = 100 yards) (Do not round intermediate calculations.) Contribution Margin per 100 yds. Contribution margin Contribution Margin ratio Choose Numerator: / Choose Denominator: Contribution Margin Ratio Contribution margin ratio 1(a) Estimate Product XT's break-even point in terms of sales units. (1 unit = 100 yards) Choose Numerator:I Choose Denominator: Break-Even Units Break-even units 1(b) Estimate Product XT's break-even polnt in terms of sales dollars. Choose Numerator: I Choose Denominator: Break-Even Dollars Break-even dollars Bison Company manufactures and sells a number of yarn products. Bison Co. is contemplating the future of XT, a special yarn used in many elementary schools for art projects, that has not been as profitable as planned. Since XT is manufactured and sold separately of the other products Bison manufactures, its total costs can be precisely measured. Plans for the next year call for a $190 selling price per 100 yards of XT yarn (1 unit). Bison's fixed costs for the year are expected to be $334,400, up to a maximum capacity of 550,000 yards of yarn. Forecasted variable costs are $114 per 100 yards of XT yarn. 1. Estimate XT's break-even point in terms of sales units and sales dollars. (Remember 1 unit = 100 yards) (Do not round intermediate calculations.) Contribution Margin per 100 yds. Contribution margin Contribution Margin ratio Choose Numerator: / Choose Denominator: Contribution Margin Ratio Contribution margin ratio 1(a) Estimate Product XT's break-even point in terms of sales units. (1 unit = 100 yards) Choose Numerator:I Choose Denominator: Break-Even Units Break-even units 1(b) Estimate Product XT's break-even polnt in terms of sales dollars. Choose Numerator: I Choose Denominator: Break-Even Dollars Break-even dollars
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Contribution margin per 100yards Selling Price 190 Less ... View the full answer
Related Book For
Financial Management Principles and Applications
ISBN: 978-0134417219
13th edition
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
Posted Date:
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