Demo-case-3 - dollars Demonstration Problem 2(Continued...

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Demonstration Problem 1 The Power Tool Division of ABC Hardware sells one product, Jig Saw, and has the following data for the second quarter: Units of output 1,200 units Price per unit $150 Variable cost per unit 90 Total fixed costs 48,000 Required: Determine 1. Quarterly operating profit when 1,200 units are sold. 2. Break-even volume in units and sales dollars. 3. Contribution margin ratio. 4. Sales dollars and units needed to generate an operating profit of $57,000. 5. Number of units sold that would produce an operating profit of 15% of sales
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Unformatted text preview: dollars. Demonstration Problem 2 (Continued from Demonstration Problem 1) The Power Tool Division of ABC Hardware introduces a second product, Circular Saw, whose unit price and unit variable cost are $200 and $120, respectively. The total fixed cost is increased to $68,000. The manager of ABC Hardware estimates that Jig Saws and Circular Saws will sell in a 3:2 ratio. Required: Calculate the break-even volume in units using 1. fixed product mix method, and 2. weighted-average contribution margin method....
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This note was uploaded on 10/29/2009 for the course ACC 066 taught by Professor Kwak during the Spring '08 term at DeAnza College.

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