What is the companys breakeven point

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Reference no: EM132460847

Assignment:

Sales mix, three products. The Ronowski Company has three product lines of belts-A, B, and C- with contribution margins of $3, $2, and $1, respectively. The president foresees sales of 200,000 units in the coming period, consisting of 20,000 units of A, 100,000 units of B, and 80,000 units of C. The company's fixed costs for the period are $255,000.

Required:

Question 1. What is the company's breakeven point in units, assuming that the given sales mix is maintained?

Question 2. If the sales mix is maintained, what is the total contribution margin when 200,000 units are sold? What is the operating income?

Question 3. What would operating income be if 20,000 units of A, 80,000 units of B, and 100,000 units of C were sold? What is the new breakeven point in units if these relationships persist in the next period?

CVP analysis, margin of safety.

Suppose Doral Corp.'s breakeven point is revenues of $1,100,000. Fixed costs are $660,000.

Question 1. Compute the contribution margin percentage.

Question 2. Compute the selling price if variable costs are $16 per unit.

Question 3. Suppose 95,000 units are sold. Compute the margin of safety in units and dollars

Flexible-budget preparation and analysis.

Bank Management Printers, Inc., produces luxury checkbooks with three checks and stubs per page. Each checkbook is designed for an individual customer and is ordered through the customer's bank. The company's operating budget for September 2012 included these data: Number of checkbooks      15,000
Selling price per book        $ 20
Variable cost per book     $ 8
Fixed costs for the month    $145,000

The actual results for September 2012 were as follows:

Number of checkbooks produced and sold ....12,000
Average selling price per book $ 21
Variable cost per book $ 7
Fixed costs for the month $150,000

Required:

Question 1. Prepare a static-budget-based variance analysis of the September performance.

Question 2. Prepare a flexible-budget-based variance analysis of the September performance

Reference no: EM132460847

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