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1. Yerke Company makes jungle gyms and tree houses for children. For jungle gyms, the...

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Accounting

1. Yerke Company makes jungle gyms and tree houses for children. For jungle gyms, the selling price is $120 and variable expenses are $90 per unit. For tree houses, the selling price is $200 and variable expenses are $100. Fixed expenses are $50,000 for each product line and $153,750 for the company (common). Last year, Yerke sold 12,000 jungle gyms and 4,000 tree houses. This year, Yerke expects to sell 12,000 jungle gyms and 8,000 tree houses. Think about which would be a better sales mix to use. Using this sales mix, how many jungle gyms need to be sold to breakeven?
2. Xeller Company makes electronic keyboards. The practice model price is $220 and variable expenses are $190 per unit. The deluxe model price is $340 and variable expenses are $250 per unit. The professional model price is $1,200 and variable expenses are $800 per unit. Total fixed expenses are $187,000. Generally, Xeller sells 6 practice models and 3 deluxe models for each professional model sold. Based on the preceding sales mix, how many total keyboards must be sold to breakeven and how many of them are deluxe models?

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