50.1K

Verified Solution

Link Copied!

Praveen Company 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. Because 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 unit. Its fixed costs for the year are expected to be $270,000. Variable costs for the year are expected to be $140 per unit. 1. Estimate Product XT's break-even point in terms of sales units and sales dollars. Contribution Margin per unit $ 0 Contbution margin Contribution Margin ratio Numerator Denominator Contribution margin ratio 0 a) Estimate Product XT's break-even point in terms of sales units Numerator Denominator Break-even units ol 16) Estimate Product XT's break even point in terms of sales dollars. Numerator Denominator Break even collars Praveen Company 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. Because 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 unit. Its fixed costs for the year are expected to be $270,000. Variable costs for the year are expected to be $140 per unit. 2. Prepare a contribution margin income statement for Product XT at the break-even point. PRAVEEN COMPANY Contribution Margin income Statement at Break-Even) - Product XT Units 5 per unit Total Contribution margin Income

Answer & Explanation Solved by verified expert

See Answer