Slicker Company makes umbrellas and outerwear items for rainy and snowy days. It had the following cost structure for the past year:
View the cost structure for the past year.
Read the requirements.
Requirement a What is the weighted average contribution margin per unit rounded to the nearest cent? into any input field.
to Using the rounded total, calculate the breakeven for the umbrellas and clothing, rounding those answers up to the nearest whole unit as well. Rounding differences may occur.
Requirement c What are the particular internal and external business risks that the company faces? Select all that apply.
A Relevant range
B Competitors
C Otherperiods analysis
D Unexpected weather conditions
E Financing
F The business model Slicker Company makes umbrellas and outerwear items for rainy and snowy days. It had the following cost structure for the past year:
View the cost structure for the past year.
Read the requirements.
Requirement c What are the particular internal and external business risks that the company faces? Select all that apply.
A Relevant range
B Competitors
C Otherperiods analysis
D Unexpected weather conditions
E Financing
F The business model
G Customer satisfaction
H Competition of new entrants
I. Practical capacity and usage
J Poor performance of products
K Learning curves
L None of the choices identify particular internal or external business rissk the company faces.
Total units needed to achieve operating income of $
Requirement e Assume the company wants to earn a $ target operating income. What sales revenues must be generated?
Complete the table below to determine the units and respective sales revenues needed to earn a $ target operating income.
Requirement mathbff Many more umbrellas are sold than clothing. Should more advertising and other efforts be directed toward promoting the clothing lines in an effort to increase the number of units sold? try and increase the units of clothing sold. Clothing has Thus, the more clothing sold compared to umbrellas, the weighted average contribution margin and the number of units that must be sold to break even. Cost structure
begintabularccccc
hline Items & Umbrellas & Clothing & & Total
hline Units produced and sold & & & &
hline Average sales price per unit & & & $ &
hline Direct materials cost per unit & & $ & $ &
hline Direct labor cost per unit & $ & & $ &
hline Variable overhead per unit & $ quad & & $ &
hline Fixed overhead per unit & $ & & $ &
hline Selling and administrative cost per unit & $ & $ & $ &
hline Direct fixed selling and administrative costs & $ total & $ total & $ &
hline Allocated fixed administrative costs & $ total & $ total & $ &
hline
endtabular