Business, 01.09.2020 22:01 RKT28

The Mugger sells three types of mugs, flowers, dogs, and sports. The following information is available:. Total Sales Volume Selling Price Variable cost per unit Total fixed costs Flowers 25,000 $20 10 Dogs 100,000 $25 20 Sports 50,000 $10 6 $500,000
REQUIRED (show all supporting calculations):.
1. What is the breakeven point for The Mugger?
2. Would you recommend promoting the change in product mix to 4 to 2 to 1 of flower mugs, dog mugs, and sports mugs? Why?
3. An executive summary is required.

Answers: 2

Show answers

Answers

Answer from: breannaasmith1122

Flowers Dogs Sports Total

sales volume 25,000 100,000 50,000

selling price $20 $25 $10

variable cost $10 $20 $6

total fixed costs $500,000

contribution margin $10 $5 $4

weighted contribution margin = [(25,000 x $10) + (100,000 x $5) + (50,000 x $4)] / 175,000 = ($250,000 + $500,000 + $200,000) / 175,000 = $5.428571

break even point in units = $500,000 / $5.428571 = 92,105.26 ≈ 92,106 units

flowers: (25/175) x 92,106 = 13,158 units

dogs: (100/175) x 92,106 = 52,632 units

sports: (50/175) x 92,106 = 26,316 units

total = 92,106 units

break even point in $

flowers: 13,158 units x $20 = $263,160

dogs: 52,632 units x $25 = $1,315,800

sports: 26,316 units x $10 = $263,160

total = $1,842,120

currently total contribution margin is:

flowers: 25,000 units x $10 = $250,000

dogs: 100,000 units x $5 = $500,000

sports: 50,000 units x $4 = $200,000

total = $950,000

operating profit = $950,000 - $500,000 = $450,000

if the change is successful, then total contribution margin would be:

flowers: 100,000 units x $10 = $1,000,000

dogs: 50,000 units x $5 = $250,000

sports: 25,000 units x $4 = $100,000

total = $1,350,000

new operating profit = $1,350,000 - $500,000 = $850,000

So yes, I would recommend promoting the change in product mix to increase the sales of flower mugs in order to increase operating profit.

Answer from: Quest

Ithink its a hope it ! : )

Answer from: Quest

answernaturalistic observation;

Another question on Business

Business, 22.06.2019 01:20

What cylinder head operation is the technician performing in this figure?

Answers: 1

Answer

Business, 22.06.2019 19:00

1. what must one do to perform the essential managerial task of controlling in achieving organizational goals? a. motivate, coordinate, and energize individuals and groups to work together to achieve organizational goals b. choose appropriate organizational goals and courses of action to best achieve those goals c. establish task and authority relationships that allow people to work together to achieve organizational goals d. establish accurate measuring and monitoring systems to evaluate how well the organization has achieved its goals

Answers: 1

Answer

Business, 22.06.2019 21:00

Mr. beautiful, an organization that sells weight training sets, has an ordering cost of $40 for the bb-1 set. (bb-1 stands for body beautiful number 1.) the carrying cost for bb-1 is $5 per set per year. to meet demand, mr. beautiful orders large quantities of bb-1 seven times a year. the stockout cost for bb-1 is estimated to be $50 per set. over the past several years, mr. beautiful has observed the following demand during the lead time for bb-1: demand during lead time probability40 0.150 0.260 0.270 0.280 0.290 0.1total 1.0the reorder point for bb-1 is 60 sets. what level of safety stock should be maintained for bb-1?

Answers: 3

Answer

Business, 23.06.2019 10:20

Teatro restoration, inc., begins renovating an old theater for urban edge productions, but after three months teatro demands an extra $250,000. urban edge agrees to pay. refer to fact pattern 13–4. if teatro says it is asking for the extra $250,000 because it has encountered extraordinary unforeseen difficulties that will add considerable cost to the project, the agreement is

Answers: 3

Answer

You know the right answer?

The Mugger sells three types of mugs, flowers, dogs, and sports. The following information is availa...

Questions