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07.10.2019 •
Business
Exercise 7-29 retail; cvp analysis with multiple products (lo 7-1, 7-2, 7-5) tim’s bicycle shop sells 21-speed bicycles. for purposes of a cost-volume-profit analysis, the shop owner has divided sales into two categories, as follows: product type sales price invoice cost sales commission high-quality $ 2,000 $ 1,050 $ 110 medium-quality 1,100 770 40 three-quarters of the shop’s sales are medium-quality bikes. the shop’s annual fixed expenses are $239,400. (in the following requirements, ignore income taxes.) required: compute the unit contribution margin for each product type. what is the shop’s sales mix? compute the weighted-average unit contribution margin, assuming a constant sales mix. what is the shop’s break-even sales volume in dollars? assume a constant sales mix. how many bicycles of each type must be sold to earn a target net income of $128,250? assume a constant sales mix.
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Ответ:
What is the shop’s sales mix?
PRODUCT 1 High25%
PRODUCT 2 Medium75%
Compute the unit contribution margin for each product type.
PRODUCT 1 High$ 0,840
PRODUCT 2 Medium$ 0,290
Compute the weighted-average unit contribution margin, assuming a constant sales mix
PRODUCT 1 High25% weighted-average
$ 59,850Contributing Margin
PRODUCT 2 Medium75% weighted-average
$ 179,550Contributing Margin
What is the shop’s break-even sales volume in dollars?
BREAK EVEN POINT
TOTALIncome Statement
$ 742,000Total Net Sales
How many bicycles of each type must be sold to earn a target net income of $128,250?
PRODUCT 1 High 140
PRODUCT 2 Medium 420
560 Bicycles
Explanation:
PRODUCT 1 High
QuantityUnitTOTALIncome Statement
5 $ 2,000$ 10,500Total Net Sales
-$ 1,050-$ 5,513Variable Cost
-$ 0,110-$ 0,578Variable Cost
$ 0,840$ 4,410Contributing Margin
-$ 59,850Anual Fixed Costs
-528%-$ 55,440Segment Margin
PRODUCT 2 Medium
QuantityUnitTOTALIncome Statement
16 $ 1,100$ 17,325Total Net Sales
-$ 0,770-$ 12,128Variable Cost
-$ 0,040-$ 0,630Variable Cost
$ 0,290$ 4,568Contributing Margin
-$ 179,550Anual Fixed Costs
-1010%-$ 174,983Segment Margin
TOTAL
QuantityUnitTOTALIncome Statement
21 $ 1,325$ 27,825Total Net Sales
-$ 0,840-$ 17,640Variable Cost
-$ 0,058-$ 1,208Variable Cost
$ 0,428$ 8,978Contributing Margin
-$ 239,400Anual Fixed Costs
-828%-$ 230,423Segment Margin
BREAK EVEN POINT
QuantityUnitTOTALIncome Statement
560 $ 1,325$ 742,000Total Net Sales
-$ 0,840-$ 470,400Variable Cost
-$ 0,058-$ 32,200Variable Cost
$ 0,428$ 239,400Contributing Margin
-$ 239,400Anual Fixed Costs
0%$ 0,000Segment Margin
BREAK EVEN POINT
QuantityUnitTOTALIncome Statement
860 $ 1,325$ 1.139,500Total Net Sales
-$ 0,840-$ 722,400Variable Cost
-$ 0,058-$ 49,450 Variable Cost
$ 0,428$ 367,650Contributing Margin
-$ 239,400Anual Fixed Costs
11%$ 128,250Segment Margin
Ответ:
well, it's good to play sports and drink water
Explanation:
give me crown please