Steven Company has fixed costs of $160,000. The unit selling price, variable cos

Question

Steven Company has fixed costs of $160,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. The sales mix for product X and Y is 60% and 40% respectively. (a) Determine the break-even point in units of X and Y. Rachel Cake Factory normally sells their specialty cake for $22. An offer to buy 100 cakes for $19 per cake was made by an organization hosting a national event in the city. The variable cost per cake is $11. A special decoration per cake will add another $1 to the cost. Determine the differential income or loss per cake from selling the cakes. Identity the following by their type of quality cost. Preventive costs Appraisal costs Internal failure costs External failure costs Scrap Recalls Warranty work Testing Vendor quality Returned merchandise Preventive machine maintenance Operator training

Explanation / Answer

Steven Company has fixed costs of $160,000. The unit selling price, variable cos

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