Large Marge, Inc. is a manufacturer of trailers for long-haul trucking companies. The company produces 2types of trailers: Retractable and Flat Beds. The information below relates to the first year of operations:Unit Sales PriceContribution Margin PercentageTraceable Fixed CostsVolume Sold (Units)Retractable$1,00060%$2,500,00010,000Flat BedsRetractable $2,220,000 Flat Beds $7,655,000Retractable $3,500,000 Flat Beds $10,375,000Retractable $1,500,000, Flat Beds $8,250,000Retractable $6,000,000, Flat Beds $14,875,000O Retractable $1,500,000, Flat Beds $1,875,000$2,50070%$4,500,0008,500Total common fixed costs were $4,000,000 and were allocated to the product lines based on their respectivepercentage of total unit sales.Based on the data above, on which amounts should the performance of the two product lines be evaluated?

The contribution margin is divided by the number of units sold to determine the contribution margin…

trucking companie es of trailers: Retractable and Flat Beds. The information below relates to th Unit Sales Price Contribution Margin Percentage Traceable Fixed Costs Volume Sold (Units) Retractable $1,000 60% $2,500,000 10,000 Flat Beds $2,500 70% $4,500,000 8,500 otal common fixed costs were $4,000,000 and were allocated to the product line

trucking companie es of trailers: Retractable and Flat Beds. The information below relates to th Unit Sales Price Contribution Margin Percentage Traceable Fixed Costs Volume Sold (Units) Retractable $1,000 60% $2,500,000 10,000 Flat Beds $2,500 70% $4,500,000 8,500 otal common fixed costs were $4,000,000 and were allocated to the product line

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 58P: Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and...

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Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 40,000 ceiling fans and 70,000 table fans in the coming year. Product price and cost information includes: Ceiling Fan Table Fan Price $56 $17 Unit variable cost $13 $8 Direct fixed cost $21,200 $43,000 Common fixed selling and administrative expenses total $98,000. Required: Question Content Area 1. What is the sales mix estimated for next year (calculated to the lowest whole number for each product)?Sales mix of ceiling fans to table fans = ___________ : ______________ 2. Using the sales mix from Requirement 1, form a package of ceiling fans and table fans. How many ceiling fans and table fans are sold at break-even? Round your intermediate calculations and final answers to the nearest whole number. Break-even ceiling fans _______ Break-even table fans ______ 3. Prepare a contribution-margin-based income…
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