Question: Problem 1 Solve the given problem based on the following information. Crouch Corp. manufactures and markets various mountaineering products. Crouch Corp. ' s managers are

Problem 1 Solve the given problem based on the following information. Crouch Corp. manufactures and markets various mountaineering products. Crouch Corp.'s managers are looking at the future of Product XYZ, which has not been as profitable as anticipated. Next year, the company plans to sell1,500 units of Product XYZ at a price of $220 each. The fixed costs are projected to be $225,000, for up to a maximum capacity of 4,500 units of Product XYZ for the year. Variable costs are projected to be $95 per unit. Calculate Product XYZ's break-even point in: Sales units Sales dollars Round the contribution margin ratio and the break-even point to two decimal places. (a) Break-even point in sales units = Fixed costs / Contribution margin per unit (Contribution margin per unit = Selling price per unit Variable cost per unit)(b) Break-even point in sales dollars = Fixed costs / Contribution margin ratio (Contribution margin ratio = Contribution margin per unit / Selling price per unit)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!