Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Cengage Learning
Question
Book Icon
Chapter 10, Problem 10P

1.

To determine

Calculate the number of cans of each kind of nut sold.

1.

Expert Solution
Check Mark

Explanation of Solution

Calculate the number of cans of each kind of nut sold as follows:

Assume, x is cans of cashews sold, hence, walnuts is 2x and almonds is 0.5 x.

10,000=x+2x+0.5x10,000 = 3.5xx=2,857

Substitute the value of x,

Almonds =0.5xAlmonds =0.5×2,857Almonds =1,429

Walnuts =2xWalnuts =2×2,857Walnuts =5,714

2.

To determine

Calcualte the sales mix percentage.

2.

Expert Solution
Check Mark

Explanation of Solution

Calcualte the sales mix percentage as follows:

ProductSales unit

Sales mix percentage

(ProductTotal×100)

Almonds1,42914.29%
Cashews2,85728.57%
Walnuts5,74157.14%
Total10,027100.00%

Table (1)

3.

To determine

Calcualte the weighted average contribution margin per unit.

3.

Expert Solution
Check Mark

Explanation of Solution

Calcualte the weighted average contribution margin per unit as follows:

Weighted average contribution marign per unit} =[(Almond unit contribution×Almonds sold)+(Cashews unit contribution×Cashews sold)+(Walnuts unit contribution×Walnuts sold)](Almonds sold+Cashews sold+Walnuts sold)=[[($8$4)×1,429]+[($10$5)×2,857]+[($6$4)×5,714]](1,429+2,857+5,714) =$31,42910,000=$3.143

4.

To determine

Calcualte the break-even sales volume.

4.

Expert Solution
Check Mark

Explanation of Solution

Calcualte the break-even sales volume G as follows:

Break even sales volume in units} = Total fixed costsWeighted average contirbution per unit=$40,000$3.143=12,727 units

5.

To determine

Calculate the unit sales of almonds, cashews and walnuts at the break-even point.

5.

Expert Solution
Check Mark

Explanation of Solution

Calculate the unit sales of almonds, cashews and walnuts at the break-even point as follows:

Units sales of almonds} = (Sales mix percentage ×Break even sales)=14.29%×12,727=1,819

Units sales of Cashews} = (Sales mix percentage ×Break even sales)=28.57%×12,727=3,636

Units sales of walnuts} = (Sales mix percentage ×Break even sales)=57.14%×12,727=7,272

6.

To determine

Calcualte the break-even sales in dollars for each product.

6.

Expert Solution
Check Mark

Explanation of Solution

Calcualte the break-even sales in dollars as follows:

Break-even dollars sales in almonds} = (Break even units sales×Unit sales price)=1,819×$8=$14,552

Break-even dollars sales in cashews} = (Break even units sales×Unit sales price)=3,636×$10=$36,360

Break-even dollars sales in walnuts} = (Break even units sales×Unit sales price)=7,272×$6=$43,632

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
A company sells seven types of boxes, ranging in volume from 17 to 33 cubic feet. The demand and size of each box is given in Table 7. The variable cost (in dollars) of producing each box is equal to the box's volume. A fixed cost of $1,000 is incurred to produce any of a particular box. If the company desires, demand for a box may be satisfied by a box of larger size. Formulate and solve a shortest-path problem whose solution will minimize the cost of meeting the A demand for boxes.
Legrand Company produces hand cream. In 2018, their financial information is as follows:Each jar sells for: $3.40Total variable cost (materials, labor, and overhead) per jar: $2.55Total fixed cost: $58,140Total jars sold in 2018: 81,6001. Calculate the break-even point in units for Legrand?
Suppose that Head-First Company now sells both bicycle helmets and motorcycle helmets. The bicycle helmets are priced at $77 and have variable costs of $47 each. The motorcycle helmets are priced at $220 and have variable costs of $145 each. Total fixed cost for Head-First as a whole equals $57,000 (includes all fixed factory overhead and fixed selling and administrative expense). Next year, Head-First expects to sell 4,850 bicycle helmets and 1,940 motorcycle helmets.   Required: 1. Form a package of bicycle and motorcycle helmets based on the sales mix expected for the coming year. 2. Calculate the break-even point in units for bicycle helmets and for motorcycle helmets. 3. Check your answer by preparing a contribution margin income statement.

Chapter 10 Solutions

Principles of Cost Accounting

Ch. 10 - What is cost-volume-profit analysis?Ch. 10 - Prob. 12QCh. 10 - What steps are required in constructing a...Ch. 10 - What is the difference between the contribution...Ch. 10 - What impact does income tax have on the break-even...Ch. 10 - Define differential analysis, differential...Ch. 10 - Prob. 17QCh. 10 - Prob. 18QCh. 10 - What are distribution costs?Ch. 10 - What is the purpose of the analysis of...Ch. 10 - In cost analysis, what determines which costs...Ch. 10 - Yellowstone Fabricators uses a process cost system...Ch. 10 - Using the information presented in E10-1, prepare...Ch. 10 - The chief executive officer of Acadia, Inc....Ch. 10 - The following production data came from the...Ch. 10 - A company had income of 50,000, using variable...Ch. 10 - The fixed overhead budgeted for Ranier Industries...Ch. 10 - Columbia Products Inc. has two divisions, Salem...Ch. 10 - The sales price per unit is 13 for the Voyageur...Ch. 10 - Teton, Inc. sells its only product for 50 per...Ch. 10 - A new product is expected to have sales of...Ch. 10 - Augusta Industries manufactures and sells two...Ch. 10 - A company has sales of 1,000,000, variable costs...Ch. 10 - Prob. 13ECh. 10 - A company has prepared the following statistics...Ch. 10 - Prob. 15ECh. 10 - Prob. 16ECh. 10 - Redwood Industries needs 20,000 units of a certain...Ch. 10 - Prob. 18ECh. 10 - Biscayne Industries has determined the cost of...Ch. 10 - Roosevelt Enterprises has determined the cost of...Ch. 10 - Prob. 3PCh. 10 - Prob. 4PCh. 10 - Prob. 5PCh. 10 - Arctic Software Inc. has two product lines. The...Ch. 10 - Prob. 7PCh. 10 - The production of a new product required Zion...Ch. 10 - Grand Canyon Manufacturing Inc. produces and sells...Ch. 10 - Prob. 10PCh. 10 - Emerald Island Company is considering building a...Ch. 10 - Royale Aluminum desires an after-tax income of...Ch. 10 - Deuce Sporting Goods manufactures a high-end model...Ch. 10 - Prob. 14PCh. 10 - Prob. 15PCh. 10 - Prob. 1MCCh. 10 - Denali Company manufactures household products...
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning