Safari File Edit View History Bookmarks Window Help ezto mheducation.com Greup W

Question

Safari File Edit View History Bookmarks Window Help ezto mheducation.com Greup Work Ch 3 2.50 points Exercise 3-16A Multiple product break-even analysis LO 3-6 Tanaka Compary manufactures two products. The budgeted per-unit contribution margin for each product Sales price Variable cost per unit 90 $135 (69) (74) Contribution margin per unit $21 61 Tanaka expects to incur annual fixed costs of $118.900. The relative sales mix of the products is 80 percent for Super and 20 percent for Supreme a. Determine the total number of products (units of Super and Supreme combined) Tanaka must sel to break even. (Do not round intermediate caliculations) b. How many units each of Super and Supreme must Tanaka sell to break even? (Do not round Product Super Product Supremo esc 20 FI F2 F3 F4 FS F6

Explanation / Answer

Answer(a): Step 1: Total number of products for break even:

Expected Total contribution = (21*.80) + (61*.20)

Expected Total contribution: 16.8 + 12.2 = $29/unit

Step 2: Break even point = Fixed cost / Contribution per unit

Break even point = 118900 / 29

Total number of products to break even = 4100 units

Answer(2):

Super's units to break even: 4100 * 80% = 3280 units

Supreme's units to break even: 4100 * 20% = 820 units

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.