Business, 05.05.2020 20:41 gcristhian8863
Praveen Co. manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding, that has not been as profitable as planned. Since Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year’s plans call for a $200 selling price per 100 yards of XT rope. Its fixed costs for the year are expected to be $270,000, up to a maximum capacity of 700,000 yards of rope. Forecasted variable costs are $140 per 100 yards of XT rope. Estimate Product XT's break-even point in terms of sales units and sales dollars. Contribution margin per 100 yds Less Sales Variable Cost Contribution margin ratio Choose Numerator: Choose Denominator: Contribution margin ratio CM per unit Sales per unit Contribution margin ratio1A) Estimate Product XT's break-even point in terms of sales units. (1 unit = 100 yards).Choose Numerator: Choose Denominator: Break-even units Fixed costs Contribution margin per unit Break-even units 1B) Estimate Product XT's break-even point in terms of sales dollars. Choose Numerator: Choose Denominator: Break-even dollars Fixed costs Contribution margin ratio Break-even dollars
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Praveen Co. manufactures and markets a number of rope products. Management is considering the future...
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