On-the-Go, Inc, produces two models of travelling cases for laptop computers: the programmer and...
Question:
On-the-Go, Inc, produces two models of travelling cases for laptop computers: the programmer and the Executive. The bags the following characteristics:
| Programmer | Executive | |
|---|---|---|
| Selling price per bag | $60 | $100 |
| Variable cost per bag | $20 | $40 |
| Expected sales (bags) per year | 8,000 | 12,000 |
The total fixed costs per year for the company are $666,000.
a. What is the anticipated level of profits for the expected sales volume?
b. Assuming that the product mix is the same at the break-even point, compute the break-even point in units. (Round your final answer up to the nearest whole unit.)
Calculate Break-Even for Multiple Product Mix
Calculating the break-even point in terms of the number of units in a product mix requires more calculations than the simple, one-product break-even point calculations require. First, the proportion of the sales mix between the multiple products must be determined, and it must be assumed that mix will remain constant in the future. Next, the individual contribution margin for each product must be known or determinable, which then leads to a calculation of the weighted average contribution margin per unit for the multiple products, combined. Then, the total number of units to break-even is determined using fixed costs, and that total number of units is then allocated to the multiple products based upon the sales mix assumed at the start of the calculation.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answera. What is the anticipated level of profits for the expected sales volume?
The total contribution margin for the Programmer bags will be 8,000 bags...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Contribution Margin: Definition & Formula
from
Chapter 22 / Lesson 20
5.7K
Understand what the contribution margin is. Learn the definition of contribution margin and understand its importance in business. Discover how to calculate it through examples.
Related to this Question
- On-the-Go, Inc., produces two models of traveling cases for laptop computers the Programmer and the Executive. The bags have the following characteristics. Programmer Executive Selling price per bag $60 $90 Variable cost per bag $20 $30 Expected sales (ba
- On-the-Go, Inc., produces two models of traveling cases for laptop computers: the Programmer and the Executive. The bags have the following characteristics: Programmer Executive Selling price per bag
- On-the-Go, Inc., produces two models of traveling cases for laptop computers: the Programmer and the Executive. The bags have the following characteristics: Programmer Executive Selling price per bag $60 $90 Variable cost per bag $20 $30 Expected sales (b
- Sundial, Inc., produces two models of sunglasses: AU and NZ. The sunglasses have the following characteristics: | |AU|NZ |Selling price per unit|$480|$480 |Variable cost per unit|$180|$240 |Expect
- Fancy Purse, Inc. manufactures two types of handbags, the Clutch and the Tote, with unit contribution margins of $9 and $15, respectively. Regardless of the type, each handbag must go through a stitching machine. The company owns 4 stitching machines and
- Noteworthy, Inc., produces and sells small electronic keyboards. Assume that you have the following information about Noteworthy's costs for the most recent month. Depreciation on factory equipment $850 Depreciation on CEO's company car $120 Speakers used
- Noteworthy, Inc., produces and sells small electronic keyboards. Assume that you have the following information about Noteworthy's costs for the most recent month. Depreciation on factory equipment $850 Depreciation on CEO's company car 190 Speakers used
- Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Guard Golf Guard Fishing Guard Selling price per unit $230 $320 $275 Variable cost per unit $80 $16
- Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Guard Golf Guard Fishing Guard Selling price per unit $320 $320 $275 Variable cost per unit $110 $1
- Outdoor Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appears below. Ski GuardGolf GuardFishing Guard Selling price per
- Parisian Accessories Inc. produces women's handbags. The cost of producing 800 handbags is as follows: The selling and administrative expenses are $24,000. The management desires a profit equal to 15%
- Electronics, Inc., is a high-volume, wholesale merchandising company. Most of its inventory turns over four or five times a year. The company has had 50 units of a particular brand of computers on hand for over a year. These computers have not sold and pr
- Outdoor Luggage, Inc, makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below.
- Outdoor luggage Inc. makes high-end hard sided luggage for sports equipment. Data concerning 3 of the company most popular models appear below. Std. Guard Gof Guard Fishing Guard Selling price per uni
- York Inc. manufactures notebook computers and has experienced noticeable declines in the purchase price of many of the components it uses, including computer chips. Which inventory costing method should York use if it wants to maximize net income? Expla
- Outdoor Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Guard Golf Guard Fishing Guard Selling price
- Special Order: High-Low Cost Estimation SafeRide, Inc. produces air bag systems that it sells to North American automobile manufacturers. Although the company has a capacity of 300,000 units per year,
- Seclusion Inc. Produces and sells recordable CD and DVD packs. Revenue and cost information relating to the products follow: CD DVD Selling price per pack $8.00 $20.00 Variable expenses per pack $3.2
- Safe Ride, Inc. produces air bag systems that it sells to North American automobile manufacturers. Although the company has a capacity of 300,000 units per year, it is currently producing at an annual rate of 180,000 units. Safe Ride, Inc. has received an
- Noteworthy, Inc., produces and sells small electronic keyboards. Assume that you have the following information about Noteworthy?s costs for the most recent month. Depreciation on factory equipment $
- Noteworthy, Inc., produces and sells small electronic keyboards. Assume that you have the following information about Noteworthy's costs for the most recent month: 1. Calculate the total product cost
- Make-or-Buy Decision: Eclipse Computer Company has been purchasing carrying cases for its portable computers at a delivered cost of $65 per unit. The company, which is currently operating below full ca
- Cannington Inc. designs, manufactures and markets personal computers and related software. The following information was taken from a recent annual report of Cannington i
- Creative Computing sells a tablet computer called the Protab. The $780 sales price of a Protab Package includes the following:
- Suppose that Skysong, Inc. produced and sold 4800 laptop computers during 2017. It reported $1,06,600 cash provided by operating activities. In order to maintain production at 4800 laptops, Skysong invested in $7050 in equipment. Skysong paid $1,150 in di
- Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Guard Golf Guard Fishing Guard Selling pric
- Waggoner Manufacturing, Inc., placed the following assets into service during 2015: |Date| Asset| Life| Cost |2/23| copiers, typewriters| 5| $ 3,000 |5/3| computers & peripherals| 5| 11,000 |9/15| office furniture| 7| 12,000 |11/30| manufacturing equipmen
- Sport Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Vault Golf Caddy Fishing Quiver Selling price p
- Model Inc., produces model automobiles made from metal It operates two production departments, Molding, and Painting, and has three service departments, Administration, Accounting, and Maintenance. Th
- Model, Inc., produces model automobiles made from metal. It operates two production departments, Molding and Painting, and has three service departments, Administration, Accounting, and Maintenance. T
- AMT, Inc., is considering the purchase of a digital camera for maintenance of design specifications by feeding digital pictures directly into an engineering workstation where computer-aided design fil
- College Carriers manufactures backpacks that are sold to students for use as book bags. Identify a specific item in this company's manufacturing, selling, or administrative processes for which the cost would be classified as: a. raw material. b. direct l
- U-RIDE, Inc. currently produces the electric engines that are used in golf carts made and sold by the Company. Electco has offered to sell the electric engines to U-RIDE at a price of $200 each. Curre
- Noteworthy, Inc., produces and sells small electronic keyboards. Assume that you have the following information about Noteworthy's costs for
- Rhetorix, Inc., produces stereo speakers. Each unit (a pair of speakers) sells for $870. Below is information on production/sales and costs for 2013: Use the high-low method to identify the fixed and
- Outdoor Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. | |Ski Guard|Golf Guard|Fishing Guard |Selling p
- Caltec, Inc., produces and sells recordable CD and DVD packs. Revenue and cost information relating to the products follow: CD (Product) DVD (Product) Selling price per pack $8.00 $40.00 Variable exp
- Doll Computer manufactures laptop computers under its own brand, but acquires all the components from outside vendors. No computers are assembled until the order is received online from customers, so
- ABS Inc., produces airbag systems that it sells to North American automobile manufacturers. Although the company has a capacity of 150,000 units per year, it is currently producing at an annual rate of 90,000 units. ABS Inc. has received an order from a J
- Larson, Inc., manufactures backpacks. Last year, it sold 85,000 of its basic model for $25 per unit. The company estimates that this volume represents a 20% share of the current market. The market is expected to increase by 15% next year. Marketing specia
- Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations upgrading their computer systems, and It backs each notebook It sells with
- Doll Computer manufacturers laptop computers under its own brand, but acquires all the components from outside vendors. No computers are assembled until the order is received online from customers, so
- Relax Designs, Inc. purchased a computerized blueprint printer that will assist in the design and display of plans for factory layouts. The cost of the printer was $45,000 and its expected useful life is four years. The company can probably sell the print
- SafeRide, Inc. produces air bag systems that it sells to North American automobile manufacturers. Although the company has a capacity of 300,000 units per year, it is currently producing at an annual
- Caltec, Inc. produces and sells recordable CD and DVD packs. Revenue and cost information relating to the products follow: [TABLE] Common fixed expenses in the company total $105,000 annually. Last year the company produced and sold 37,500 CD packs and 18
- Doll Computer manufactures laptop computers under its own brand but acquires all the components from outside vendors. No computers are assembled until the older is received online from customers, so there is no finished goods inventory. When an order is r
- The following costs result from the production and sale of 12,000 CD sets manufactured by Gilmore Company for the year ended December 31, 2015. The CD sets sell for $18 each. The company has a 25% inc
- The following is a list of costs incurred by several businesses: a. Packing supplies for products sold. b. Tires for an automobile manufacturer. c. Costs for television advertisement. d. Disk drives for a microcomputer manufacturer. e. Executive bonus for
- Advance Products, Inc., has just organized a new division to manufacture and sell specially designed tables using select hardwoods for personal computers. The division's monthly costs are shown in the
- Sys, Inc. purchased a new computer system and paid the following: Computer system 100,000 Delivery costs the computer system 12,000 Installation costs of the computer system 10,000 Increase in the annual insurance premiums 1,000 What should Sys. Inc recor
- Optima Company produces computer software that Tech Comp, Inc., sells. Optima receives a royalty of 15 percent of sales. Tech Comp pays royalties to Optima Company semi-annually - on May 1 for sales m
- The SIMCO, INC., a vendor, sells a personal computer that includes an operating system, productivity software and PCS on the operating system and the productivity software. The operating system provides the essential functionality of the personal computer
- Study Inc. manufactures desks. The standard cost card shows that each desk should use 4.6 square feet of vinyl at a cost of $19.25 per square foot. Last month, Study Inc. purchased 3,200 square feet o
- Munoz, Inc. produces a special line of plastic toy racing cars. Munoz, Inc. produces the cars in batches. To manufacture a batch of the cars, the company must set up the machines and molds. Setup costs are batch-level costs because they are associated wit
- Luxury Shoe Warehouse, Inc. is a designer shoe warehouse, selling some of the most luxurious and fashionable shoes at prices that people can actually afford. Its balance sheet, at February 2, 2013, contained the following (listed alphabetically, amounts i
- Sheffield, Inc. manufactures ergonomically designed computer furniture. Sheffield uses a job order costing system. On November 30, the Work in Process Inventory consisted of the following jobs: Job No. Item Units Accumulated cost CC723 Computer caddy 25,
- ErgoFurn, Inc. manufactures ergonomically designed computer furniture. ErgoFurn uses a job order costing system. On November 30, the Work in Process Inventory consisted of the following jobs: On Novem
- Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase of $59 per unit. The company, which is currently operating below full capacity, charges factory ove
- Diamond Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $59 per unit. The company, which is currently operating below full capacity, charges facto
- Traditional Product Costing versus Activity-Based Costing Ridgeland Inc. makes backpacks for large sporting goods chains that are sold under the customers' store brand names. The Accounting Department
- Slams Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4,900. Each racket was sold at a price of $90. Fixed overhead costs are $78,000 and fixed selling and administrative costs are $65,200. T
- Slams Inc., a manufacturer of tennis rackets, began operations this year. The company produced 7,000 rackets and sold 5,900. Each racket was sold at a price of $95. Fixed overhead costs are $79,000 and fixed selling and administrative costs are $66,200. T
- Corporal Inc. and Admiral Company compete with each other in the personal computer market. Corporal's primary strategy is to assemble computers to customer orders, rather than for inventory. Thus, for
- Creative Computing sells a tablet computer called the Protab. The $860 sales price of a Protab Package includes the following: A coupon to purchase a Creative Probook for $675, a price that represents a 25% discount from the regular Probook price of $900.
- Tabletops Products, Inc., has just organized a new division to manufacture and sell specially designed tables using select hardwoods for personal computers. The division's monthly costs are shown in t
- Knitline Inc. produces high-end sweaters and jackets in a single factory. The following information was provided for the coming year. Sweaters Jackets Sales$ 211,500$ 451,200 Variable cost of goods so
- SoundLab Inc. manufactures two models of speakers, DL and XL. Based on the following production and sales data for September 2016, prepare (a) a sales budget and (b) a production budget: DL XL Estim
- New Wave Technology Inc. manufactures and sells two products. MP3 players and satellite radios. The fixed costs are $271.600. and the sales mix is 40% MP3 players and 60%, satellite radios. The unit s
- New Wave Technology Inc. manufactures and sells two products, MP3 players and satellite radios. The fixed costs are $225,000, and the sales mix is 60% MP3 players and 40% satellite radios. The unit se
- Allison Company makes luggage. One popular model is the Traveler (a 21" wheeled carry-on). Budgeted sales for this model are: Month Unit Sales March 25,000 April 34,000 May 50,000 June 70,000 Desired
- Cannington, Inc., designs, manufactures and markets personal computers and related software. The following information was taken from a recent annual report of Cannington industries: The property, Pl
- PEM, Inc., has been experiencing difficulty for some time due to erratic sales of its sole product-a high-capacity battery for laptop computers. The company's contribution format income statement for
- Technold Inc. sells computer systems. Technold lease computers to Lone Star Company on January 1, 2016. The manufacturing cost of the computers was $21 million. This non-cancelable lease had the following terms: Lease payments: $2,845,401 semianually; f
- Pro-Mate, Inc. is a producer of athletic equipment. The company is considering the purchase of a machine to produce baseball bats. The machine will cost $60,000 and have a 10-year useful life. The fo
- Pro-Mate, Inc. is a producer of athletic equipment. The company is considering the purchase of a machine to produce baseball bats. The machine will cost $60,000 and have a 10-year useful life. The fol
- Com-Tel Inc. manufactures and assembles two models of smart phones?the Tiger Model and the Lion Model. The process consists of a just-in-time cell for each product. The data that follow concern only t
- For General Motors Corporation, which of the following is a product cost? A. CEO's salary B. Steel C. Salary of a marketing executive D. Depreciation
- Your boss at the company asks you to buy 1,000 laptops for 1,000 employees. You have identified two options: Option A is a 1,000 Euro laptop that is very fast and nice. Option B is a 600 Euro laptop that is slower. Assume the following: Laptop lasts for 2
- Included in KCN?s inventory are the following: $100,000 (cost) of computers which suppliers ceased producing in the middle of 20X3. Although the wholesale value of these computers is only about $30,00
- Larson, Inc., manufactures backpacks. Last year, it sold 112,000 of its basic model for $20 per unit. The company estimates that this volume represents a 35 percent share of the current market. The ma
- High Country Outfitters, Inc. makes backpacks for large sporting goods chains that are sold under the customers store brand names. The accounting department has identified the following overhead costs and cost drivers for the next year: [TABLE] Total pred
- SoundLab Inc. manufacture two models of speakers, DL and XL Based on the following production and sales data for September 2016 prepare a a sales budget and b a production budget
- Sport Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. | |Ski Vault |Golf Caddy| Fishing Quiver |Selling price per unit |$260 |$350 |$245 |Variable cost per un
- Glossier Images Inc., produces decorative statues. Management has provided the following information: -Actual sales 34,000 statues -Budgeted production 53,000 statues -Selling price $46 per statue
- High Country Outfitters, Inc., makes backpacks for large sporting goods chains that are sold under the customers' store brand names. The accounting department has identified the following overhead cos
- Quality Data, Inc. manufactures two products, CDs and DVDs, both on the same assembly line. The predicted sales are 20,000 CD and 25,000 DVD. The predicted costs for the year 2010 are as follows: Vari
- Larson, Inc., manufactures backpacks. Last year, it sold 85,000 of its basic model for $25 per unit. The company estimates that this volume represents a 20 percent share of the current market. The market is expected to increase by 15 percent next year. Ma
- Edenton Electronics Inc. produces and sells two models of pocket calculators, XQ-103 and XQ-104. The calculators sell for $15 and $25, respectively. Because of the intense competition, Edenton faces m
- Poo Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders. Model Annual Sales in Units High F 10,000 Great P 16,000 National uses a volume-based costing syst
- A company is planning to introduce a new portable computer to its existing product line. Management must decide whether to make the computer case or buy it from an outside supplier. The lowest outside
- Xcelerate Productions Inc. manufactures and sells three different products of different qualities namely: Normal, High, and Superior. The accounting department provides the following information on th
- Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 5,700 rackets and sold 4,600. Each racket was sold at a price of $87. Fixed overhead costs are $72,390 and
Explore our homework questions and answers library
Browse
by subject