Rhonda's Specialty Sports shop sells hiking poles. For the purpose of a CVP analysis that I...

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Rhonda's Specialty Sports shop sells hiking poles. For the purpose of a CVP analysis that I would like performed by you, I am dividing sales into the following 2 categories: Sales Price Supplier Invoice Cost Product Type Commission Carbon Poles $30 Titanium Poles $20 $500 4. $300 $220 $140 Sales Three quarters of my shops sales are titanium poles. My annual fixed expenses are $65,000. Please ignore income taxes in performing this analysis for me. What I require of you is the following: 1. What is my unit contribution margin for each product type individually? (3 points) 2. What is the shops sales mix? (1 point) 3. Tell me what my weighted average contribution margin is, please assume a constant sales mix. (4 points) Assuming a constant sales mix, what is my break-even point going to be? (4 points) 5. Lastly, I really need to make net income of $48,750 this year, so, how many of each type of poles do I need to sell? Again, please assume that I have a constant sales mix. (4 points) Rhonda's Specialty Sports shop sells hiking poles. For the purpose of a CVP analysis that I would like performed by you, I am dividing sales into the following 2 categories: Sales Price Supplier Invoice Cost Product Type Commission Carbon Poles $30 Titanium Poles $20 $500 4. $300 $220 $140 Sales Three quarters of my shops sales are titanium poles. My annual fixed expenses are $65,000. Please ignore income taxes in performing this analysis for me. What I require of you is the following: 1. What is my unit contribution margin for each product type individually? (3 points) 2. What is the shops sales mix? (1 point) 3. Tell me what my weighted average contribution margin is, please assume a constant sales mix. (4 points) Assuming a constant sales mix, what is my break-even point going to be? (4 points) 5. Lastly, I really need to make net income of $48,750 this year, so, how many of each type of poles do I need to sell? Again, please assume that I have a constant sales mix. (4 points)

Answer rating: 100% (QA)

1 Unit Contribution Margin for Each Product Type The unit contribution margin for each product type is the difference between the sales price and the ... View the full answer