Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit...

Transcribed Image Text:

Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows: Sales Price Variable Cost per Unit $25 Product per Unit AA $50 BB 35 CC 30 Their sales mix is reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $288,000 per year. A. What are total variable costs for Morris with their current product mix? Total variable costs B. Calculate the number of units of each product that will need to be sold in order for Morris to break even. Number of Units per Product 10 AA 88 CC C. What is their break-even point in sales dollars? Break-even point in sales s Sales Product AA Product BB Product CC Total Sales 10 D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0". Income Statement Variable Costs 1000 Total variable costs B. Calculate the number of units of each product that will need to be sold in order for Morris to break even. Number of Units per Product AA BB CC C. What is their break-even point in sales dollars? Break-even point in sales s D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0". Income Statement Sales Product AA Product BB Product CC Total Sales Variable Costs Product AA Product BB Product CC 0000 000000 Total Variable Costs Contribution Margin Fixed Costs Net Income Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows: Sales Price Variable Cost per Unit $25 Product per Unit AA $50 BB 35 CC 30 Their sales mix is reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $288,000 per year. A. What are total variable costs for Morris with their current product mix? Total variable costs B. Calculate the number of units of each product that will need to be sold in order for Morris to break even. Number of Units per Product 10 AA 88 CC C. What is their break-even point in sales dollars? Break-even point in sales s Sales Product AA Product BB Product CC Total Sales 10 D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0". Income Statement Variable Costs 1000 Total variable costs B. Calculate the number of units of each product that will need to be sold in order for Morris to break even. Number of Units per Product AA BB CC C. What is their break-even point in sales dollars? Break-even point in sales s D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0". Income Statement Sales Product AA Product BB Product CC Total Sales Variable Costs Product AA Product BB Product CC 0000 000000 Total Variable Costs Contribution Margin Fixed Costs Net Income

Answer rating: 100% (QA)

To calculate the total variable costs for Morris with their current product mix we need to multiply the unit variable cost of each product by the numb... View the full answer