Heinz Inc. recently expanded its manufacturing capacity. During 2021, the firm produced and sold 5.000 units...

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Heinz Inc. recently expanded its manufacturing capacity. During 2021, the firm produced and sold 5.000 units of sauces including ketchup, pesto, and mayo. Ketchup represents half of their sales and the other half of sales is cqually divided into pesto and mayo. The company's annual fixed costs totaled 80.000s. Alpine Ski Company is subject to a 20% income tax rate. Product type Sale price per unit Variable Manufacturing costs per unit 60S 305 80S Ketchup 40S Pesto 15S Mayo 555 Required: 1. Compute the unit contribution margin for each product type. (10 points) 2. What is the company's sales mix? (10 points) 3. Compute the weighted-average unit contribution margin and calculate the breakeven point in units for each product type. (20 points) 4. Prepare a contribution income statement of the company for 2021 knowing that: • Variable selling costs equaled 5000S and variable administrative costs equaled 3500s. • The total annual fixed costs were divided into 50.000S of fixed manufacturing costs, 10.000S of fixed selling costs and 20.000S of fixed administrative costs. • Don't forget about the income taxes. (30 points). 5. How many products of each type should Heinz Inc. sell to earn a targeted net profit of 90.000S. (20 points) 6. Suppose the sales revenues increased by 10%, what woukd be the impact on net income? (10 points). Heinz Inc. recently expanded its manufacturing capacity. During 2021, the firm produced and sold 5.000 units of sauces including ketchup, pesto, and mayo. Ketchup represents half of their sales and the other half of sales is cqually divided into pesto and mayo. The company's annual fixed costs totaled 80.000s. Alpine Ski Company is subject to a 20% income tax rate. Product type Sale price per unit Variable Manufacturing costs per unit 60S 305 80S Ketchup 40S Pesto 15S Mayo 555 Required: 1. Compute the unit contribution margin for each product type. (10 points) 2. What is the company's sales mix? (10 points) 3. Compute the weighted-average unit contribution margin and calculate the breakeven point in units for each product type. (20 points) 4. Prepare a contribution income statement of the company for 2021 knowing that: • Variable selling costs equaled 5000S and variable administrative costs equaled 3500s. • The total annual fixed costs were divided into 50.000S of fixed manufacturing costs, 10.000S of fixed selling costs and 20.000S of fixed administrative costs. • Don't forget about the income taxes. (30 points). 5. How many products of each type should Heinz Inc. sell to earn a targeted net profit of 90.000S. (20 points) 6. Suppose the sales revenues increased by 10%, what woukd be the impact on net income? (10 points).

Answer rating: 100% (QA)

1 Unit contribution margin Ketchup 60 40 20 Pesto Selling price per unit Less Variable cost per unit ... View the full answer