MaxiMac Enterprises manufactures The Kitchen Wizz. Data relating to the production of 'Kitchen Wizz' for 2019...

 

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MaxiMac Enterprises manufactures The Kitchen Wizz. Data relating to the production of 'Kitchen Wizz' for 2019 was as follows: Annual volume in units $32,000 Selling price per unit $60 Variable manufacturing cost per unit $28 $120,000 Variable marketing and distribution costs per $12 $360,000 Annual fixed manufacturing costs unit Annual fixed non-manufacturing costs Required: Calculate the contribution margin in dollars and the contribution margin ratio for 2019. Calculate the break-even in units and in sales dollars for 2019. Calculate the number of 'Kitchen Wizz' units that would need to be sold in order to make a profit of $45,000. One of the machines involved in the manufacturing process broke down. While MaxiMac can continue production, it cannot maintain the current annual production of 32,000 units. Maximum productive capacity with the machine offline is estimated to be 28,000 units. Until the machine returns to its productive capacity, the annual fixed manufacturing costs will decline by $20,000. How will this impact on MaxiMac's break even point and potential for profit? Justify and provide calculations if required. A business owner stated "I am in business to make a profit, I am not interested in merely breaking even. Discuss how break-even analysis is an important analysis tool for any business. MaxiMac Enterprises manufactures The Kitchen Wizz. Data relating to the production of 'Kitchen Wizz' for 2019 was as follows: Annual volume in units $32,000 Selling price per unit $60 Variable manufacturing cost per unit $28 $120,000 Variable marketing and distribution costs per $12 $360,000 Annual fixed manufacturing costs unit Annual fixed non-manufacturing costs Required: Calculate the contribution margin in dollars and the contribution margin ratio for 2019. Calculate the break-even in units and in sales dollars for 2019. Calculate the number of 'Kitchen Wizz' units that would need to be sold in order to make a profit of $45,000. One of the machines involved in the manufacturing process broke down. While MaxiMac can continue production, it cannot maintain the current annual production of 32,000 units. Maximum productive capacity with the machine offline is estimated to be 28,000 units. Until the machine returns to its productive capacity, the annual fixed manufacturing costs will decline by $20,000. How will this impact on MaxiMac's break even point and potential for profit? Justify and provide calculations if required. A business owner stated "I am in business to make a profit, I am not interested in merely breaking even. Discuss how break-even analysis is an important analysis tool for any business.

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To answer your questions lets calculate the required values step by step 1 Contribution Margin and Contribution Margin Ratio Contribution Margin per u... View the full answer