1. A company makes two products: tables and chairs. How would a lower than expected fixed cost impact a multi-product Cost-Volume-Profit Analysis for this company?
It would decrease the weighted-average unit contribution margin.
It would increase the total break-even units.
It would decrease the break-even units for tables.
It would increase the break-even units for chairs.
2. A company makes two products: tables and chairs. How would a higher than expected selling price per unit for chairs impact a multi-product Cost-Volume-Profit Analysis for this company?
It would decrease the break-even sales.
It would increase the break-even sales.
It would decrease the sales mix percent for chairs.
It would not change the break-even units for tables.
1. A company makes two products: tables and chairs. How would a lower than expected fixed cost impact a multi-product Cost-Volume-Profit Analysis for this company?
It would decrease the weighted-average unit contribution margin.
It would increase the total break-even units.
It would decrease the break-even units for tables.
It would increase the break-even units for chairs.
2. A company makes two products: tables and chairs. How would a higher than expected selling price per unit for chairs impact a multi-product Cost-Volume-Profit Analysis for this company?
It would decrease the break-even sales.
It would increase the break-even sales.
It would decrease the sales mix percent for chairs.
It would not change the break-even units for tables.
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Related questions
1. Sales Mix and Break-Even Sales
Dragon Sports Inc. manufactures and sells two products, baseballbats and baseball gloves. The fixed costs are $836,000, and thesales mix is 30% bats and 70% gloves. The unit selling price andthe unit variable cost for each product are as follows:
| Products | Unit Selling Price | Unit Variable Cost | ||
| Bats | $70 | $50 | ||
| Gloves | 180 | 110 | ||
a. Compute the break-even sales (units) forboth products combined.
units
b. How many units of each product, baseballbats and baseball gloves, would be sold at break-even point?
| Baseball bats | units |
| Baseball gloves | units |
2.
Break-Even Sales
Currently, the unit selling price of a product is $240, the unitvariable cost is $200, and the total fixed costs are $476,000. Aproposal is being evaluated to increase the unit selling price to$270.
a. Compute the current break-even sales(units).
units
b. Compute the anticipated break-even sales(units), assuming that the unit selling price is increased to theproposed $270, and all costs remain constant.
units
Sales Mix and Break-Even Analysis
Heyden Company has fixed costs of $1,179,900. The unit sellingprice, variable cost per unit, and contribution margin per unit forthe company's two products are provided below.
| Product | Selling Price | Variable Cost per Unit | Contribution Margin per Unit | ||||||
| Q | $360 | $140 | $220 | ||||||
| Z | 270 | 150 | 120 | ||||||
The sales mix for products Q and Z is 70% and 30%, respectively.Determine the break-even point in units of Q and Z. If required,round your answers to the nearest whole number.
a. Product Q units
b. Product Z units
