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pls in excel Name Sevall Surfware is a company that specializes in selling towel

ID: 2559905 • Letter: P

Question

pls in excel

Name Sevall Surfware is a company that specializes in selling towels, swimsuits, and beach accessories The sales mix is 5:5:10 (i.e. for every 5 towels sold, 5 swimsuits and 10 beach accessories are sold). Find the break-even point for each product. The company's annual fixed costs are $34,000. Additionally, Sevall wants to achieve an operating profit of $102,000. How many units would it need to sell to achieve a profit of $136K? Selling Variable Price Per Cost Per Unit Unit Towels Swimsuits Beach Accessories 30 18

Explanation / Answer

1 per unit Towels per unit Swimsuits per unit Beach Accessories Total Sales-Mix 5 5 10 20 Selling Price 20 100 50 250 30 300 650 Variable cost 6 30 20 100 18 180 Contribution Margin 14 70 30 150 12 120 340 Margin ratio 70 60 40 52.30769 Less : Fixed cost 34000 Break even sales in amount in ratio of 100:250:300 10000 25000 30000 65000 = Total Fixed cost/Total Margin Ratio =34000/52.30769 Break even sales in units 500 500 1000 2 To achieve the operating profit of $102000 Required contribution will be =34000+102000 136000 Total margin ratio 52.30769 Sales to achieve the profit of $102000 260000 3 Sales to achieve the profit of $136000 Required contribution will be =34000+136000 170000 Total margin ratio 52.30769 Sales to achieve the profit of $102000 325000 Total Sales Towels SwimSuits Beach accessories Total Sales in the ratio of 100:250:300 325000 50000 125000 150000 Selling price 20 50 30 No. of units to be sold=total sales/selling price 2500 2500 5000