Do Homework-Samantha Lucas - Macrosoft Edge mathodcom/Student/PlayerHomework asp

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Do Homework-Samantha Lucas - Macrosoft Edge mathodcom/Student/PlayerHomework aspx?homeworkid 18&flushed-false;&icld-47400938; 2017 10A BUS 501 Gindaba Homework: Module 2: Assignment #2-Chapter 3 Sav Score: 0 of 1 pt 9of20(17complete) HW Score: 54 99%, 11 of 201 E3-31 (similar to) Question Help Pennsylvania Favorites Company produces toy aligators and toy dolphins. Foxed Requirements osts ane $1.293.800 per year. Sales revenue and variable costs per unit are( as follow (a) Suppose the company ourenty sells 176.000 alligators per year and 09,00 dolphins per year. Assuming the sales mix stays constant how many alligators and dolphins must the company sell to break even per year? (b) Suppose the company currently sells 99.000 aligators per year and 176.00 dolphins per year. Assuming the sales mix stays constant, how may alligators and doiphins must the company sell to break even per year? (c) Explain why th* total number of toys needed to ak even in part a is the Alligators Dolphins 3 173 24 Sales price Variable oosts same as or different trom the number in part b. Requirement (a) Suppose the company currenty sels 178.000 aligators per year and 99.000 dolphins per year. Assuming the sales mix stays constant, how many gators and doiphins must the company sell to break even per year? Begin by decemining the sales mix ratios for each produet (Round the ratios to two decimal places.) Alligators Dolphins Enter any number in the edit fields and then click Check Answer Pemanng Clear Al Check Answer Type here to search

Explanation / Answer

(c) The number of toys required to break-even in (a) is different from (b) due to the different sales mix and hence the different weighted average unit contribution. The higher the contribution, lower is the break-even.

(a) Sales mix: Alligators [176000/(176000 + 99000)] 64% Dolphins [99000 / (176000 + 99000)] 36% Alligators Dolphins Total Sales price 17 24 41 Variable costs 11 9 20 Contribution per unit 6 15 21 Sales mix (64% : 36%) 64 36 100 Total Contribution $ 384 540 924 Weighted average unit contribution = 924 / 100 = $9.24 Assume the total number of units at break-even = X (Weighted average contribution per unit x X) - Total Fixed costs = Profit 9.24X - 1293600 = 0 9.24X = 1293600 X = 1293600/9.24 = 140000 units Alligators: 140000 x 64% = 89600 units Dolphins: 140000 x 36% = 50400 units

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