1 / 3

Exercise 7-51

Exercise 7-51. Facts given: Standard Chrome Sales Price $ 65 $ 75 VE per unit $ 50 $ 55 CM per unit $ 15 $ 20 Total Fixed Expenses = $ 15,300 Sales Mix is 3 standard sales for every 2 chrome sales (3/5 and 2/5)

leo-larson
Download Presentation

Exercise 7-51

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Exercise 7-51 Facts given: Standard Chrome Sales Price $ 65 $ 75 VE per unit $ 50$ 55 CM per unit $ 15 $ 20 Total Fixed Expenses = $ 15,300 Sales Mix is 3 standard sales for every 2 chrome sales (3/5 and 2/5) What is the BE in sales for each product?

  2. Exercise 7-51 Standard Chrome Sales Price $ 65 $ 75 VE per unit $ 50$ 55 CM per unit $ 15 $ 20 x Sales Mix x 3/5x 2/5 WACM per unit 9 + 8 = $17 BE in Units = Fixed Exp / WACM per unit BE in Units = $ 15,300/$ 17 = 900 units (total) Per Product: Standard: 900 units x 3/5 = 540 units Chrome: 900 units x 2/5 = 360 units

  3. Exercise 7-51 How many units would the company need to sell to earn $9,350? TP in Units = Fixed Exp + TP / WACM per unit TP in Units = $ 15,300 + 9,350 /$ 17 = 1,450 units (total) Per Product: Standard: 1,450 units x 3/5 = 870 units Chrome: 1,450 units x 2/5 = 580 units

More Related