Problem 18-6A (Algo) Break-even analysis

Required information Problem 18-6A (Algo) Break-even analysis LO P2 [The following information applies to the questions displayed below.) Praveen Company manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding that has not been as profitable as planned. Because Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year's plans call for a $170 selling price per unit. Its fixed costs for the year are expected to be $214,200. Variable costs for the year are expected to be $119 per unit. Problem 18-6A (Algo) Part 1 Problem 18-6A (Algo) Part 1 1. Estimate Product XT's break-even point in terms of sales units and sales dollars. (Do not round intermediate calculations.) Contribution Margin per unit Contribution margin Contribution Margin ratio Numerator: 1 Denominator: 1 Contribution margin ratio 1(a) Estimate Product XT's break-even point in terms of sales units. (1 unit = 100 yards) Numerator: 7 Denominator: / Break-even units 1(b) Estimate Product XT's break-even point in terms of sales dollars. Numerator: Denominator: / Break-even dollars Problem 18-6A (Algo) Break-even analysis LO P2 (The following information applies to the questions displayed below.] Praveen Company manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding that has not been as profitable as planned. Because Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year's plans call for a $170 selling price per unit. Its fixed costs for the year are expected to be $214,200. Variable costs for the year are expected to be $119 per unit Problem 18-6A (Algo) Part 2 2. Prepare a contribution margin income statement for Product XT at the break-even point PRAVEEN COMPANY Contribution Margin Income Statement (at Break-Even) - Product XT Units $ per unit Total Contribution margin Income