10. The sales mix percentages for Professor Mullen\'s Gourmet Wine Divisions Par
ID: 2517594 • Letter: 1
Question
10. The sales mix percentages for Professor Mullen's Gourmet Wine Divisions Paris and Vienna are 70% and 30%. The contribution margin ratios (CM %) are: Paris (40%) and Vienna (30%) Fixed costs are S888,000. what is the Brilliant Professor's break-even point in dollars (BEP SS)? A) $310,800 B) $2,400,000 C) $2,537,142 D) $2,690,909 Use the following to answer question 11: Befuddled But Brilliant Old Professor Mullen's Gourmet Food Company sells its product for $60 per unit. During 2017, it produced 60,000 units and sold 50,000 units (there was no beginning inventory or Bl= 0). Costs per unit are: direct materials (DM) S 15, direct labor (DL) S9, and variable overhead (VOH) $3. Fixed costs are: $720,000 (FOH) manufacturing overhead, and $90,000 (s&A;) selling and administrative expenses 11. The per unit (product) manufacturing cost under absorption costing (ABS) is A) $24. B) $27. C) $39. D) $41. 12. The per unit (product) manufacturing cost under variable costing (V/C) is A) $24. B) $27. C) $39 D) $41 13. Cost of goods (CGS) sold under absorption costing (ABS) is A) $1,350,000 B) S1,620,000. C) $1,950,000. D) $1,560,000. 14. Ending inventory (EI) under variable costing (VC) is A) $270,000. B) S390,000. C) $600,000. D) $1,350,000. Page 3Explanation / Answer
10. Break even point = Fixed cost / weighted average contribution margin ratio
Weighted average contribution margin ratio = (weight of Paris * contribution margin rati of Paris) + (weight of Vienna * contribution margin ratio of Vienna)
= (70%*40%) + (30%*30%)
= 37%
Break even point = 888000 / 0.37
= $2,400,000
Hence answer is B.
11) Unit cost under absorption costing
Hence, answer is C.
12) Unit cost under variable costing
Hence, answer is B.
13) COGS under absorption costing
Hence answer is C.
14) Ending inventory under variable costing = 10000*27
= $270,000
Hence answer is A.
Direct material per unit $15 Direct labor per unit $9 variable overhead per unit $3 Fixed cost per unit $12 Product unit cost $39Related Questions
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