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

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BE6-3Eastland Corp. had total variable costs of $150,000, total fixed costs of$120,000, and total revenues of $250,000. Compute the required sales indollars to break even.BE6-7NoFly Corporation sells three different models of a mosquito “zapper.”Model A12 sells for $50 and has variable costs of $35. Model B22 sellsfor $100 and has variable costs of $70. Model C124 sells for $400 andhas variable costs of $300. The sales mix of the three models is A12,60%; B22, 15%; and C124, 25%. What is the weighted-average unitcontribution margin?
Information for NoFly Corporation is given in BE6-7. If the companyhas fixed costs of $269,500, how many units of each model must thecompany sell in order to break even?
Dixie Candle Supply makes candles. The sales mix (as a percentage oftotal dollar sales) of its three product lines is birthday candles 30%,standard tapered candles 50%, and large scented candles 20%. Thecontribution margin ratio of each candle type is shown below.Candle TypeContribution Margin RatioBirthday20%Standard tapered30%Large scented45%(a) What is the weighted-average contribution margin ratio?1
(b) If the company's fixed costs are $450,000 per year, what is the dollaramount of each type of candle that must be sold to break even?BE6-10Faune Furniture Co. consists of two divisions, Bedroom Division andDining Room Division. The results of operations for the most recent

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Term
Spring
Professor
STEEDLE

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