Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows: Sales Price Variable Cost Product per Unit per Unit AA $50 $30 BB 35 10 25 15 Their sales mix is reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $253,500 per year. A. What are total variable costs for Morris with their current product mix? Total variable costs B. Calculate the number of units of each product that will need to be sold in order for Morris to break even. Number of Units per Product AA BB CC C. What is their break-even point in sales dollars? Break-even point in sales $

Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows: Sales Price Variable Cost Product per Unit per Unit AA $50 $30 BB 35 10 25 15 Their sales mix is reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $253,500 per year. A. What are total variable costs for Morris with their current product mix? Total variable costs B. Calculate the number of units of each product that will need to be sold in order for Morris to break even. Number of Units per Product AA BB CC C. What is their break-even point in sales dollars? Break-even point in sales $

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6PA: Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit...

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orris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows: Product Sales Priceper Unit Variable Costper Unit AA $55 $30 BB 45 15 CC 30 15 Their sales mix is reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $220,500 per year. A. What are total variable costs for Morris with their current product mix? Total variable costs $fill in the blank e0b38b060fef067_1 B. Calculate the number of units of each product that will need to be sold in order for Morris to break even. Number ofUnits per Product AA fill in the blank e0b38b060fef067_2 BB fill in the blank e0b38b060fef067_3 CC fill in the blank e0b38b060fef067_4 C. What is their break-even point in sales dollars? Break-even point in sales $fill in the blank e0b38b060fef067_5 D. Using an income statement format, prove that this is the…
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