Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow:Percentage Contributionof UnitMargin perUnitLens ALens BLens CSales24%4432$ 504255Required:1. Determine the weighted-average contribution margin per unit.2. Determine the number of units of each product that Tiago must sell to break even if fixed costs are $189,000.3. Determine how many units of each product must be sold to generate a profit of $66,000.Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Units of Lens AUnits of Lens BUnits of Lens CDetermine how many units of each product must be sold to generate a profit of $66,000.Note: Round your intermediate calculations to nearest whole number. Round your answers up to the next whole number.Round weighted-average contribution margin per unit to 2 decimal places.UnitsUnitsUnits

Cost volume profit analysis is the technique used by management for decision-making. The methods…

Answered: Tiago makes three models of camera…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7PA: Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model...

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Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.
Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: Percentage of Unit sales Contribution Margin per unit Lens A 24 % $ 34 Lens B 43 26 Lens C 33 39 Required: 1. Determine the weighted-average contribution margin per unit. 2. Determine the number of units of each product that Tiago must sell to break even if fixed costs are $195,000. 3. Determine how many units of each product must be sold to generate a profit of $70,000.
Craylon Manufacturing Company produces two products, X and Y. The following information is presented for both products: X Y Selling price per unit $40 $25 Variable cost per unit 25 15 Total fixed costs are $275,000.Required:a. Calculate the contribution margin for each product.b. Calculate breakeven point in units of both X and Y if the sales mix is 3 units of X for every unit of Y.c. Calculate breakeven volume in total dollars if the sales mix is 2 units of X for every 3 units of Y.
Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: Lens A Lens B Lens C Contribution Percentage of Margin per Unit Sales 28% 37 35 Unit $ 34 26 39 Required: 1. Determine the weighted-average contribution margin per unit. 2. Determine the number of units of each product that Tiago must sell to break even if fixed costs are $195,000. 3. Determine how many units of each product must be sold to generate a profit of $76,000.
The following costs are for Optical View Incorporated, a contact lens manufacturer: Output in Units Fixed Costs Variable Costs Total Costs 250 $ 4,750 $ 7,500 $ 12,250 300 4,750 9,000 13,750 350 4,750 10,500 15,250 400 4,750 12,000 16,750 For each level of output calculate the per-unit total cost, per-unit variable cost, and per-unit fixed cost. (Round your answers to the nearest whole dollar amount.)
Lindstrom Company produces two fountain pen models. Information about its products follows: Product A Product B Sales revenue Less: Variable costs Contribution margin Total units sold Lindstrom's fixed costs total $86,500. Required: $ 76,600 41,400 $ 46,000 5,000 $ 123,400 52,800 $ 91,000 5,000 1. Determine Lindstrom's weighted-average unit contribution margin and weighted-average contribution margin ratio. 2. Calculate Lindstrom's break-even point in units and in sales revenue. 3. Calculate the number of units that Lindstrom must sell to earn a $150,000 profit. 4. Calculate Lindstrom's margin of safety (in units and sales dollars) and margin of safety as a percentage of sales based on the sales data provided in the table above. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the number of units that Lindstrom must sell to earn a $150,000 profit. Note: Do not round your intermediate calculations. Round your answer…
Best Windows is a small company that installs windows. Its cost structure is as follows: Selling price from each window installation Variable cost of each window installation Annual fixed costs $ $ $ 160,000 Use (a) the equation method and (b) the contribution method to calculate operating income if Best installs 4,000 windows. Use (a) the Equation method to calculate operating income if Best installs 4,000 windows. Begin by determining the formula to calculate the operating income using the equation method. Then, calculate the operating income. (Abbreviation used: FC = Fixed costs, SP = Selling price, VCU = Variable cost per unit, Q = Quantity of units sold.) X X )-( )-( X X 700 600 X = Operating income = Next, use (b) the contribution method to calculate operating income if Best installs 4,000 windows. Begin by determining the formula to calculate the operating income using the contribution method. Then, calculate the operating income. = Operating income
Voice Com, Inc., uses the product cost method of applying the cost - plus approach to product pricing. The costs of producing and selling 5,000 units of cell phones are as follows:Voice Com desires a profit equal to a 13% rate of return on invested assets of $600, 800.a. Determine the amount of desired profit from the production and sale of 5,000 units of cell phones.Sfill in the blank 1b. Determine the product cost per unit for the production of 5,000 of cell phones. If required, round your answer to nearest dollar.Sfill in the blank 2 per unitc. Determine the product cost markup percentage (rounded to two decimal places) for cell phones.fill in the blank 3 %d. Determine the selling price of cell phones. Round to the nearest dollar.
FlashCo. Manufactures 1 GB flash drives (jump drives). Price and cost data for a relevant range extending to 200,000 units per month are as follows: (Click the icon to view the data.) Requirements Ignore requirements 2, 3, 9 & 10 Requirement 1. What is the company's contribution margin per unit? The contribution margin per unit is $3. What is the company's contribution margin ratio? The contribution margin ratio is 15%. What is the company's total contribution margin? The total contribution margin is $. Requirement 4. What is the breakeven point in units? The company's breakeven point is units. What is the breakeven point in sales dollars? The breakeven point in dollars is $ Requirement 5. How many units would the company have to sell to earn a target monthly profit of $260,100? In order to earn a monthly profit of $260,100, the company must sell units. C Requirement 7. Return to the original data for this question and the rest of the questions. What is the company's current operating…
Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: Product Sales Priceper Unit Variable Costper Unit Model 101 $280 $180 Model 201 345 220 Model 301 395 250 The current product mix is 4:3:2. The three models share total fixed costs of $532,500. A. Calculate the sales price per composite unit. Sales price ? per composite unit B. What is the contribution margin per composite unit? Contribution margin ? per composite unit C. Calculate Manatoah’s break-even point in both dollars and units. Break-even point in dollars ? Break-even point in units ? unit D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0". Income Statement Sales Model 101 Model 201 Model 301 Total Sales Variable Costs Model 101 Model 201 Model 301…
Harrington Corporation produces three products, A, B, and C. Pertinent information on these products is as follows: Product Selling Price per Unit Variable Cost per Unit Fixed Costper Unit DL Hoursper Unit A $ 4.00 $ 1.00 $ 2.00 2 B $ 3.50 $ 0.50 $ 2.00 2 C $ 6.00 $ 2.00 $ 3.00 3 The objective function for a linear program to maximize contribution margin from the set of three products is: Multiple Choice Z = $3A + $2.50B + $5C. Z = A + B + C. Z = A + $0.50B + $2C. Z = $3A + $3B + $4C. Z = $4A + $3.50B + $6C.
SBD Phone Company sells its waterproof phone case for $122 per unit. Fixed costs total $262,000, and variable costs are $52 per unit. Compute the units of product that must be sold to earn pretax income of $228,000. Units to be sold to achieve targeted income Choose Numerator: Choose Denominator: Units to Achieve Target Units to achieve target II

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