Sports Products, Inc., produces three different toy footballs with the following annual data: Glow Basic Extreme Total
Fantastic news! We've Found the answer you've been seeking!
Question:
Sports Products, Inc., produces three different toy footballs with the following annual data:
Glow | Basic | Extreme | Total | |
Selling price per unit | $10 | $4 | $12 | |
Variable cost per unit | $ 3 | $1 | $ 3 | |
Expected unit sales | 8,000 | 10,000 | 22,000 | 40,000 |
Sales mix | 20 percent | 25 percent | 55 percent | 100 percent |
Fixed costs | $205,900 |
Assume the sales mix remains the same at all levels of sales.
Required:
(Round all answers to the nearest cent and nearest unit where appropriate.)
- Calculate the weighted average contribution margin per unit.
- How many units in total must be sold to break even?
- How many units of each product must be sold to break even?
- How many units in total must be sold to earn an annual profit of $200,000?
- How many units of each product must be sold to earn an annual profit of $200,000?
Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-0470477144
5th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date: