8. Crown Co. can produce types lamp models are as follows: two types of lamps, t

Question

8. Crown Co. can produce types lamp models are as follows: two types of lamps, the Enlightner and Foglighter. The data on the two Foglighter Sales volume in units Unit sales price Unit variable cost $400 240 $100 180 contribution margin takes one machine hour to produce each product. Total fxed costs for the manufacture of both products maximum capacity are $90.000. Demand is high enough for either product to keep the plant operating at ng that sales mix in terms of dollars remains constant, what is the breakeven point in Round intermediate calculations to 4 decimal places and final answer up to the nearest Assumi whole number.) A $244,765. B. $306,513. C. $118,365 D. $945,667 E $288,735

Explanation / Answer

Solution:

Total fixed costs = $90,000

Breakeven sales in dollar = Fixed costs / weighted average contribution margin ratio = $90,000 / 36.77% = $244,765

Hence option A is correct.

Computation of weighted average contribution margin ratio Particualrs Enlightener Fogligher Total Sales $150,000.00 $160,000.00 Variable cost per unit $100,000.00 $96,000.00 Contribution margin per unit $50,000.00 $64,000.00 Contribution margin ratio 33.3333% 40.0000% Sales Mix 150/310 160/310 Weighted average contribution per unit 16.12% 20.65% 36.77%

Related Questions

Navigate

• Browse (All)
• Browse 8
• Subjects

---

---

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