i Safari File Edit View History Bookmarks Window Help 99%-, Sat 11:07 AM Q abbho

Question

i Safari File Edit View History Bookmarks Window Help 99%-, Sat 11:07 AM Q abbhosted.cuny.edu ! Assignments-2017 Fall... Take Test: Chapter 21-.. Classroom FIN 250-Re… Cengage Login Chegg Study Guided... Home Page Remaining Time: 1 hour, 14 minutes, 09 seconds. Question Completion Status: cing Board Corp. sells a snowboard for $720 that it can purchase for $300. It has additional variable costs of $120 and a monthly fi IX cost of $66,000. Instructions: NOTE: Solve each question as a separate and independent situation and show all workings 1. Calculate the breakeven point in units. (10 points) 2. Racing Board Corp is considering raising its selling price to $747. Calculate the new breakeven in units. (10 points) 3. Racing Board Corp has found a new supplier for the snowboards, who will sell the board to Racing Board Corp for $285. Calculate the new breakeven in units. (10 points) 4. Racing Board Corp has had many requests from customers for bindings to go along with the board. Racing Board Corp believes that for every three boards it sells, it could sell two bindings. Racing Board Corp can purchase the binding for $75 and would incur another $15 in other variable costs for a total variable cost of the bindings of $90. Racing Board Corp can sell the bindings for $165 Total fixed costs should remain the same at $66,000 per month. Calculate the breakeven point in units for each product line- snowboards and bindings. (30 points) 2

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Amount 1) Sales price per unit                           720.00 Less Variable Expenses per unit = 300 + 120                         (420.00) Contribution Margin = 720 -420                           300.00 Fixed cost                     66,000.00 BEP in units = 66000/300                           220.00 2) Sales price per unit                           747.00 Less Variable Expenses per unit = 300 + 120                         (420.00) Contribution Margin = 747 -420                           327.00 Fixed cost                     66,000.00 BEP in units = 66000/327                           201.83 3) Sales price per unit                           720.00 Less Variable Expenses per unit = 285 + 120                         (405.00) Contribution Margin = 720 -405                           315.00 Fixed cost                     66,000.00 BEP in units = 66000/315                           209.52 4) Board Bindings Total Sales price per unit                           720.00                    165.00 Less Variable Expenses per unit                           (420.00)                    (90.00) Contribution Margin                           300.00                      75.00 No of units                                3.00                        2.00 Total Contribution margin                           900.00                    150.00                    1,050.00 No of units                            5.00 Weighted average                       210.00 Fixed cost                 66,000.00 BEP in units = 66000/210                                    -                         314.29 No of units Board = 315/5*3 Bindings =315/5*2                           189.00                    126.00                       315.00

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

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