Burlington Windows plans to sell two different brands of windows-Chad and Musk-and budgets the following: E...
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Burlington Windows plans to sell two different brands of windows-Chad and Musk-and budgets the following: E (Click the icon to view the budgets.) Calculate the breakeven point for Burlington Windows in terms of (a) the number of units sold and (b) revenues. Begin by determining the sales mix. (The windows can only be sold in whole units. Enter the ratios as whole numbers.) A budgeted sales mix of 3,400 units of Chad Windows sold for every 1,700 units of Musk Windows sold. is a ratio of That is, we think of Burlington Windows selling a bundle of 2 units of Chad Windows and unit(s) of Musk Windows. Next, calculate the contribution margin of the bundle. Number of Units of Contribution Margin Chad Windows and per unit for Chad Contribution Musk Windows in Windows and Musk Margin of the Each Bundle Windows Bundle Chad Windows 100 2$ 200 Musk Windows 1 50 50 250 Total Determine the formula used to calculate the breakeven point of the bundle. Then, enter the amounts in the formula to calculate the breakeven point in bundles. Fixed costs Contribution margin per bundle = Breakeven point in bundles 170,000 250 680 Calculate the breakeven point in terms of units. Data Table Chad Windows Must Windows Total number of units to break even Chad Windows Musk Windows Total 3,400 1,700 5,100 Expected sales Revenues, $700 and $450 per unit 2.380,000 S 765.000 $ 3,145,000 2,040,000 680,000 2,720.000 Variable costs, S600 and $400 per unit $ Contribution margin, $100 and $50 per unit 340,000 S 85.000 425,000 170,000 Fixed costs $ 255,000 Operating income Print Done Burlington Windows plans to sell two different brands of windows-Chad and Musk-and budgets the following: E (Click the icon to view the budgets.) Calculate the breakeven point for Burlington Windows in terms of (a) the number of units sold and (b) revenues. Begin by determining the sales mix. (The windows can only be sold in whole units. Enter the ratios as whole numbers.) A budgeted sales mix of 3,400 units of Chad Windows sold for every 1,700 units of Musk Windows sold. is a ratio of That is, we think of Burlington Windows selling a bundle of 2 units of Chad Windows and unit(s) of Musk Windows. Next, calculate the contribution margin of the bundle. Number of Units of Contribution Margin Chad Windows and per unit for Chad Contribution Musk Windows in Windows and Musk Margin of the Each Bundle Windows Bundle Chad Windows 100 2$ 200 Musk Windows 1 50 50 250 Total Determine the formula used to calculate the breakeven point of the bundle. Then, enter the amounts in the formula to calculate the breakeven point in bundles. Fixed costs Contribution margin per bundle = Breakeven point in bundles 170,000 250 680 Calculate the breakeven point in terms of units. Data Table Chad Windows Must Windows Total number of units to break even Chad Windows Musk Windows Total 3,400 1,700 5,100 Expected sales Revenues, $700 and $450 per unit 2.380,000 S 765.000 $ 3,145,000 2,040,000 680,000 2,720.000 Variable costs, S600 and $400 per unit $ Contribution margin, $100 and $50 per unit 340,000 S 85.000 425,000 170,000 Fixed costs $ 255,000 Operating income Print Done
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Related Book For
Probability & Statistics for Engineers & Scientists
ISBN: 978-0131877115
8th edition
Authors: Ronald E. Walpole, Raymond H. Myers, Sharon L. Myers, Keying Ye
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