Question 4: Cost Volume and Profit (CVP) AnalysisBellroy Company makes protective cases for iPhone 11 Pro Max. The company has threeproduct lines - Polycarbonate (PC) cases, Silicone (S) cases and Thermoplastic Polyurethane(TPU) case. The following table presents the sales and cost data of the business.PC caseS caseTPU CaseSelling Price per unit506590Variable Cost Per unit456187Company's total fixed cost35,100After analysing the market trend, the management accountant of Bellroy Company expectsthat the company will be able to sell 17,500 cases in next month consisting, 2,500 units of PCcase, 10,000 units of S case and 5,000 units of TPU case.Required:(a) If the given sales mix is maintained, what is Bellroy company's break-even point inunits?rance fo..docxSAQ Which side..docxTopic 6 Decision..pptSAQ33°C A Required:(a) If the given sales mix is maintained, what is Bellroy company's break-even point inunits?(b) Assuming that the given sales mix is maintained, what is the operating profit when17,500 units are sold?(c) If the company sold 2,500 units of PC case, 7,500 units of S case and 7,500 units ofTPU case, what would be the operating income? What would be the new break-evenpoint in units if these new relationships persist in the next period?(d) The CEO of the Bellroy Company reviewed the break-event points calculated therequirement (a) and (c). After careful observation, she commented "It is always betterfor a company to choose the sales mix that yields the lower break-even point". Do youagree with the CEO's comment? Explain your answer.ance fo...docxSAQ Which side..docxTopic 6 Decision.pptSAQ33°C A

Question 4: Cost Volume and Profit (CVP) Analysis Bellroy Company makes protective cases for iPhone 11 Pro Max. The company has three product lines - Polycarbonate (PC) cases, Silicone (S) cases and Thermoplastic Polyurethane (TPU) case. The following table presents the sales and cost data of the business. PC case S case TPU Case Selling Price per unit 50 65 90 Variable Cost Per unit 45 61 87 Company's total fixed cost 35,100 After analysing the market trend, the management accountant of Bellroy Company expects that the company will be able to sell 17,500 cases in next month consisting, 2,500 units of PC case, 10,000 units of S case and 5,000 units of TPU case. Required: (a) If the given sales mix is maintained, what is Bellroy company's break-even point in units?

Question 4: Cost Volume and Profit (CVP) Analysis Bellroy Company makes protective cases for iPhone 11 Pro Max. The company has three product lines - Polycarbonate (PC) cases, Silicone (S) cases and Thermoplastic Polyurethane (TPU) case. The following table presents the sales and cost data of the business. PC case S case TPU Case Selling Price per unit 50 65 90 Variable Cost Per unit 45 61 87 Company's total fixed cost 35,100 After analysing the market trend, the management accountant of Bellroy Company expects that the company will be able to sell 17,500 cases in next month consisting, 2,500 units of PC case, 10,000 units of S case and 5,000 units of TPU case. Required: (a) If the given sales mix is maintained, what is Bellroy company's break-even point in units?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 17E: Product cost method of product costing Smart Stream Inc. uses the product cost method of applying...

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