CVP Analysis; Contribution Margin (CM); Break-even point (3pts): GoalGoalGoal, Inc. manufactures soccer cleats that are all...

  

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CVP Analysis; Contribution Margin (CM); Break-even point (3pts): GoalGoalGoal, Inc. manufactures soccer cleats that are all sold at the same price. Suppose the firm is currently selling 20,000 pairs of soccer cleats per month. The following data pertains to this firm: Selling price: Manufacturing costs: Variable Manufacturing costs (DM, DL, VarOH) Fixed Manufacturing costs (FixedOH) Non-manufacturing costs: Variable selling and administrative costs Fixed selling and administrative costs: Administrative salaries Main office Rent Main office depreciation Advertising costs Per pair of Per month: soccer cleats: $180.00 $114.00 $12.00 $301,500 $27,900 $3,05 $181,350 $55,750 a. Calculate the firm's Contribution Margin (CM) per pair of soccer cleats (0.5pts). b. Calculate the firm's CM Ratio. Round your answer to the nearest hundredth (i.e. two decimal places, such as 76.80%). (0.5pts) c. Calculate the number of pairs of soccer cleats the firm will need to sell per month in order to break even (i.e. calculate the break-even point in units). Round your answer up to the nearest whole unit if necessary. (0.5pts) d. Assume the company's target profit for the month is $320,000. Determine the number of pairs of soccer cleats the firm will need to sell per month to attain this target profit. Round your answer up to the nearest whole unit if necessary. (0.5pts) e. Prepare a Contribution Margin Income Statement for the month ended 3/31/2023 at the current sales volume of 20,000 pairs of soccer cleats (see text/e-text exhibits 5.13 & 5.19 for examples). Make sure to include a proper heading and use proper formatting. (1pt) 20 Home Insert Draw Design AutoSave OFF Paste X Page 2 of 3 Calibri (Bo... v 11 B I U 772 words ✓ ab X V Layout Α Α΄ x² A References Aa ✓ P Αν English (United States) Mailings Review V V W PS Homework #9_Spring 2023 - Saved to my Mac View E✓ | V Accessibility: Investigate Tell me ↓ V Sales Variable costs V Deadline: you must submit this assignment electronically via Canvas using the submission link I have provided in the module by 11:59pm, Sunday 4/2. Make sure your name, your TA's name, and your discussion section time are clearly indicated on your submission to ensure you receive credit. |AaBbCcDdE |AaBbCcDdE No Spacing Normal 2. CVP analysis; break-even (4.5pts): Zintendo, Inc., produces and sells a single product, the Zintendo Stitch gaming console. The firm's Contribution Margin Income Statement for the wwwmmmmmmm month follows. Assume the firm's sales volume for the month ended 2/28/2023 was 950,000 units. Zintendo, Inc. Contribution Margin Income Statement For the month ended 2/28/2023 Contribution Margin Fixed Costs Income Aa BbCcDc Heading 1 Part A (1.5pts total; 0.5pts each calculation): 1) Calculate the firm's Contribution Margin (CM) per unit. (0.5pts) $284,050,000 $107,350,000 $176,700,000 $131,670,000 $45,030,000 AaBb CcDd Ee AaBb Heading 2 Title 2) Calculate the number of gaming consoles the firm will need to sell per month in order to break even (i.e. calculate the break-even point in units). Round your answer up to the nearest whole unit if necessary. (0.5pts) 3) Assume the company's target income for the upcoming month is $60,000,000. Determine the unit sales needed per month to attain this target income. Round your answer up to the nearest whole unit if necessary. (0.5pts) Part B (3pts total; 1pt each income statement): Prepare contribution margin income statements for each of the three separate cases below. The current sales volume for the month ended 2/28/2023 is 950,000 gaming consoles. 1) "What if" #1? Suppose the number of units produced and sold increases to 975,000 units per month and total fixed costs increase by $5,100,000 (assume all other variables stay the same) per month. 2) "What if" #2? Return to the original data. Suppose instead the unit selling price per unit decreases by 5% and the number of units produced and sold (i.e. sales volume) increases by 10% (assume all other variables stay the same). 3) "What if" #3? Return to the original data. Suppose instead that units produced and sold decreases to 925,000 gaming consoles per month, total fixed costs decrease by $4,000,000 per month, price per unit increases by $20 per unit, and variable costs per unit increase by $15 per unit. O Focus > Styles Pane Comments Dictate Editing Sensitivity ------ BAR = OR BDS E Editor Share 113% 20 Home Insert Draw Design AutoSave OFF Paste X Page 3 of 3 Calibri (Bo... v 11 B I U 772 words ✓ ab X V Layout Α Α΄ x² A References Aa ✓ P Αν English (United States) Mailings Review V = = = = V W PS Homework #9_Spring 2023 - Saved to my Mac View V Accessibility: Investigate Tell me ↓ V |AaBbCcDdE |AaBbCcDdE No Spacing Normal Deadline: you must submit this assignment electronically via Canvas using the submission link I have provided in the module by 11:59pm, Sunday 4/2. Make sure your name, your TA's name, and your discussion section time are clearly indicated on your submission to ensure you receive credit. 3. Sales mix and CVP Analysis (2.5pts): K-9s Companions, Inc. produces and sells three different sizes of dog beds: Small, Medium, and Large. Monthly information regarding the three sizes of beds are shown below: Aa BbCcDc Heading 1 Small Medium 4,750 Sales volume (# dog beds) Price per unit $45 VC per unit $29 Total Fixed Costs (FC) per month for the entire firm: $232,400 Answer each of the following questions (you must show all of your work); 0.5pts each calculation: a. Determine the sales mix percentage (%) for each the sizes of dog bed. c. b. Determine the contribution margin (CM) per unit for each of the sizes of dog bed. Calculate the weighted average contribution margin (WACM) per unit (round your final answer to the nearest cent, i.e. to two decimal places, such as $91.44). 6,750 $60 $40 Large 8,500 AaBb CcDd Ee AaBb Heading 2 Title $70 $46 d. Calculate the total number of dog beds that K-9s Companion's must sell per month to break-even. Round up to the nearest whole unit if necessary. e. Based on sales mix, calculate the number of units of each type of dog bed that would be sold per month at the firm's break-even point. Round up to the nearest whole unit if necessary. O Focus > Styles Pane Comments Dictate Editing E Sensitivity Editor =--~~ PA+++ *H = OR BO Share 113% CVP Analysis; Contribution Margin (CM); Break-even point (3pts): GoalGoalGoal, Inc. manufactures soccer cleats that are all sold at the same price. Suppose the firm is currently selling 20,000 pairs of soccer cleats per month. The following data pertains to this firm: Selling price: Manufacturing costs: Variable Manufacturing costs (DM, DL, VarOH) Fixed Manufacturing costs (FixedOH) Non-manufacturing costs: Variable selling and administrative costs Fixed selling and administrative costs: Administrative salaries Main office Rent Main office depreciation Advertising costs Per pair of Per month: soccer cleats: $180.00 $114.00 $12.00 $301,500 $27,900 $3,05 $181,350 $55,750 a. Calculate the firm's Contribution Margin (CM) per pair of soccer cleats (0.5pts). b. Calculate the firm's CM Ratio. Round your answer to the nearest hundredth (i.e. two decimal places, such as 76.80%). (0.5pts) c. Calculate the number of pairs of soccer cleats the firm will need to sell per month in order to break even (i.e. calculate the break-even point in units). Round your answer up to the nearest whole unit if necessary. (0.5pts) d. Assume the company's target profit for the month is $320,000. Determine the number of pairs of soccer cleats the firm will need to sell per month to attain this target profit. Round your answer up to the nearest whole unit if necessary. (0.5pts) e. Prepare a Contribution Margin Income Statement for the month ended 3/31/2023 at the current sales volume of 20,000 pairs of soccer cleats (see text/e-text exhibits 5.13 & 5.19 for examples). Make sure to include a proper heading and use proper formatting. (1pt) 20 Home Insert Draw Design AutoSave OFF Paste X Page 2 of 3 Calibri (Bo... v 11 B I U 772 words ✓ ab X V Layout Α Α΄ x² A References Aa ✓ P Αν English (United States) Mailings Review V V W PS Homework #9_Spring 2023 - Saved to my Mac View E✓ | V Accessibility: Investigate Tell me ↓ V Sales Variable costs V Deadline: you must submit this assignment electronically via Canvas using the submission link I have provided in the module by 11:59pm, Sunday 4/2. Make sure your name, your TA's name, and your discussion section time are clearly indicated on your submission to ensure you receive credit. |AaBbCcDdE |AaBbCcDdE No Spacing Normal 2. CVP analysis; break-even (4.5pts): Zintendo, Inc., produces and sells a single product, the Zintendo Stitch gaming console. The firm's Contribution Margin Income Statement for the wwwmmmmmmm month follows. Assume the firm's sales volume for the month ended 2/28/2023 was 950,000 units. Zintendo, Inc. Contribution Margin Income Statement For the month ended 2/28/2023 Contribution Margin Fixed Costs Income Aa BbCcDc Heading 1 Part A (1.5pts total; 0.5pts each calculation): 1) Calculate the firm's Contribution Margin (CM) per unit. (0.5pts) $284,050,000 $107,350,000 $176,700,000 $131,670,000 $45,030,000 AaBb CcDd Ee AaBb Heading 2 Title 2) Calculate the number of gaming consoles the firm will need to sell per month in order to break even (i.e. calculate the break-even point in units). Round your answer up to the nearest whole unit if necessary. (0.5pts) 3) Assume the company's target income for the upcoming month is $60,000,000. Determine the unit sales needed per month to attain this target income. Round your answer up to the nearest whole unit if necessary. (0.5pts) Part B (3pts total; 1pt each income statement): Prepare contribution margin income statements for each of the three separate cases below. The current sales volume for the month ended 2/28/2023 is 950,000 gaming consoles. 1) "What if" #1? Suppose the number of units produced and sold increases to 975,000 units per month and total fixed costs increase by $5,100,000 (assume all other variables stay the same) per month. 2) "What if" #2? Return to the original data. Suppose instead the unit selling price per unit decreases by 5% and the number of units produced and sold (i.e. sales volume) increases by 10% (assume all other variables stay the same). 3) "What if" #3? Return to the original data. Suppose instead that units produced and sold decreases to 925,000 gaming consoles per month, total fixed costs decrease by $4,000,000 per month, price per unit increases by $20 per unit, and variable costs per unit increase by $15 per unit. O Focus > Styles Pane Comments Dictate Editing Sensitivity ------ BAR = OR BDS E Editor Share 113% 20 Home Insert Draw Design AutoSave OFF Paste X Page 3 of 3 Calibri (Bo... v 11 B I U 772 words ✓ ab X V Layout Α Α΄ x² A References Aa ✓ P Αν English (United States) Mailings Review V = = = = V W PS Homework #9_Spring 2023 - Saved to my Mac View V Accessibility: Investigate Tell me ↓ V |AaBbCcDdE |AaBbCcDdE No Spacing Normal Deadline: you must submit this assignment electronically via Canvas using the submission link I have provided in the module by 11:59pm, Sunday 4/2. Make sure your name, your TA's name, and your discussion section time are clearly indicated on your submission to ensure you receive credit. 3. Sales mix and CVP Analysis (2.5pts): K-9s Companions, Inc. produces and sells three different sizes of dog beds: Small, Medium, and Large. Monthly information regarding the three sizes of beds are shown below: Aa BbCcDc Heading 1 Small Medium 4,750 Sales volume (# dog beds) Price per unit $45 VC per unit $29 Total Fixed Costs (FC) per month for the entire firm: $232,400 Answer each of the following questions (you must show all of your work); 0.5pts each calculation: a. Determine the sales mix percentage (%) for each the sizes of dog bed. c. b. Determine the contribution margin (CM) per unit for each of the sizes of dog bed. Calculate the weighted average contribution margin (WACM) per unit (round your final answer to the nearest cent, i.e. to two decimal places, such as $91.44). 6,750 $60 $40 Large 8,500 AaBb CcDd Ee AaBb Heading 2 Title $70 $46 d. Calculate the total number of dog beds that K-9s Companion's must sell per month to break-even. Round up to the nearest whole unit if necessary. e. Based on sales mix, calculate the number of units of each type of dog bed that would be sold per month at the firm's break-even point. Round up to the nearest whole unit if necessary. O Focus > Styles Pane Comments Dictate Editing E Sensitivity Editor =--~~ PA+++ *H = OR BO Share 113%

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a Contribution margin per pair of soccer cleats Selling price per pair Variable Cost per pair Contri... View the full answer