Business, 06.05.2021 15:30 mandy9386

Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows: Brighter Cleaner
Sales volume in units 400 600
Unit sales price $1,000 $1,000
Unit variable cost 200 700

The number of machine hours to produce one unit of Brighter is 1, while the number of machine hours for each unit of Cleaner is 2. Total fixed costs for the manufacture of both products are $295,000.

Required:
a. Determine the breakeven point in total units for Smith Company, assuming that the sales mix (on the basis Of relative sales volume in units) remains constant. Use the weighted-average contribution margin approach.
b. At this breakeven level, how many units of each product must be sold? Due to rounding, the total breakeven units for Requirement 2 may differ slightly than in Requirement 1.
c. Using the Indirect approach, what is the overall breakeven point in sales dollars? Use the breakeven units computed in Requirement 1.

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 15:00

Kim opim, an enthusiastic student, is on her flight over from philadelphia (phl) to paris. kim reflects upon how her educational experiences from her operations courses could explain the long wait time that she experienced before she could enter the departure area of terminal a at phl. as an airline representative explained to kim, there are four types of travelers in terminal a (buad 311) buad 311. mcgraw-hill create. vitalbook file. the citation provided is a guideline. check each citation for accuracy before use.

Answers: 3

Answer

Business, 22.06.2019 00:50

cranium, inc., purchases term papers from an overseas supplier under a continuous review system. the average demand for a popular mode is 300 units a day with a standard deviation of 30 units a day. it costs $60 to process each order and there is a five−day lead−time. the holding cost for a paper is $0.25 per year and the company policy is to maintain a 98% service level. cranium operates 200 days per year.what is the reorder point r to satisfy a 98% cycleminus−service level? a. greater than 1,700 unitsb. greater than 1,600 units but less than or equal to 1,700 unitsc. greater than 1,500 units but less than or equal to 1,600 unitsd. less than or equal to 1,500 units

Answers: 1

Answer

Business, 22.06.2019 16:00

Three pounds of material a are required for each unit produced. the company has a policy of maintaining a stock of material a on hand at the end of each quarter equal to 30% of the next quarter's production needs for material a. a total of 35,000 pounds of material a are on hand to start the year. budgeted purchases of material a for the second quarter would be:

Answers: 1

Answer

Business, 22.06.2019 19:00

The east asiatic company (eac), a danish company with subsidiaries throughout asia, has been funding its bangkok subsidiary primarily with u.s. dollar debt because of the cost and availability of dollar capital as opposed to thai baht-denominated (b) debt. the treasurer of eac-thailand is considering a 1-year bank loan for $247,000.the current spot rate is b32.03 /$, and the dollar-based interest is 6.78% for the 1-year period. 1-year loans are 12.04% in baht.a. assuming expected inflation rates of 4.3 % and 1.24% in thailand and the united states, respectively, for the coming year, according to purchase power parity, what would the effective cost of funds be in thai baht terms? b. if eac's foreign exchange advisers believe strongly that the thai government wants to push the value of the baht down against the dollar by5% over the coming year (to promote its export competitiveness in dollar markets), what might the effective cost of funds end up being in baht terms? c. if eac could borrow thai baht at 13% per annum, would this be cheaper than either part (a) or part (b) above?

Answers: 2

Answer

You know the right answer?

Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two prod...

Questions