Chapter 6 Practice Questions.docx - BE6-3 Eastland Corp....

BE6-3
Eastland Corp. had total variable costs of $150,000, total fixed costs of
$120,000, and total revenues of $250,000. Compute the required sales in
dollars to break even.
BE6-7
NoFly Corporation sells three different models of a mosquito “zapper.”
Model A12 sells for $50 and has variable costs of $35. Model B22 sells
for $100 and has variable costs of $70. Model C124 sells for $400 and
has variable costs of $300. The sales mix of the three models is A12,
60%; B22, 15%; and C124, 25%. What is the weighted-average unit
contribution margin?
Information for NoFly Corporation is given in BE6-7. If the company
has fixed costs of $269,500, how many units of each model must the
company sell in order to break even?
Dixie Candle Supply makes candles. The sales mix (as a percentage of
total dollar sales) of its three product lines is birthday candles 30%,
standard tapered candles 50%, and large scented candles 20%. The
contribution margin ratio of each candle type is shown below.
Candle Type Contribution Margin Ratio
Birthday 20%
Standard tapered 30%
Large scented 45%
(a) What is the weighted-average contribution margin ratio?
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(b) If the company's fixed costs are $450,000 per year, what is the dollar
amount of each type of candle that must be sold to break even?
BE6-10
Faune Furniture Co. consists of two divisions, Bedroom Division and
Dining Room Division. The results of operations for the most recent