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fredvales19
07.10.2020 •
Business
The Blanket Company (TBC) manufactures two types of blankets. One is made of nylon. The other is made of wool. The budgeted per-unit contribution margin for each product follows. Nylon Wool Sales price $ 145 $ 197 Variable cost per unit (75 ) (87 ) Contribution margin per unit $ 70 $ 110 TBC expects to incur annual fixed costs of $827,000. The relative sales mix of the products is 80 percent for Nylon and 20 percent for Wool. Required Determine the total number of products (units of Nylon and Wool combined) TBC must sell to earn a $109,000 profit. How many units each of Nylon and Wool blankets must TBC sell to earn a $109,000 profit? Prepare an income statement using the contribution margin format.
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Ответ:
Results are below.
Explanation:
First, we need to calculate the break-even point in units with the desired profit:
Desired profit= $109,000
Break-even point (units)= (Total fixed costs + desired profit) / Weighted average contribution margin
Weighted average contribution margin= (weighted average selling price - weighted average unitary variable cost)
Weighted average contribution margin= (145*0.8 + 197*0.2) - (75*0.8 + 87*0.2)
Weighted average contribution margin= $78
Break-even point (units)= (827,000 + 109,000) / 78
Break-even point (units)= 12,000
For each product:
Nylon= 12,000*0.8= 9,600
Wool= 12,000*0.2= 2,400
Finally, the contribution margin income statement:
Sales= (9,600*145 + 2,400*197)= 1,864,800
Total variable cost= (9,600*75 + 2,400*87)= (928,800)
Contribution margin= 936,000
Fixed costs= (827,000)
Net operating income= 109,000
Ответ:
The answer is: D) $6,423.20
Explanation:
When you look at the price of bonds, for example this one, the 91.760 means that the bonds are being sold at 91.76% of their face value. So if Dowc Beverage's bonds are have a face value of $1,000, it means that their current fair market value is $917.60
To find out how much will seven bonds cost, you just multiply $917.60 x 7 = $6,423.20