November 26, 2015

Homework Help: Accounts

Posted by Amy on Tuesday, February 5, 2008 at 8:26am.

A manufacturing Company produces 2 products A and B.
The following information is presented for both products:


Selling Price per unit

Variable Cost per unit

Total Fixed Costs are $468,000.


The contribution margin for each product.
Break-even point in units of both A and B if the sales mix is 3 units of A for every unit of B.
Break-even volume in total dollars if the sales mix is 2 units of A for every 3 units of B.
Question 2
Davis Manufacturing gathered the following information:

Variable Costs $630,000
Income Tax Rate 40%
Contribution Margin Ratio 30%


Compute total fixed costs assuming a break-even volume in dollars of $900,000.
Compute sales volume in dollars to produce an after-tax net income of $72,000.

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