M McGra X New Tab x MyWa x * Cours x b Answerapt x + ezto.mheducation.com/hm.tpx Carbex, Inc., produces cutlery sets out of high-quality wood and...
View the step-by-step solution to:

Question

Carbex, inc. produces cutlery sets out of high quality wood and steel the company makes a standard cutlery set and

a dulexe set and sells them to retail department stores throughout the country .the standard set sells for$60,and the dulexe set sells for $75. The variable expenses associated with each set are given below15799741686051900759202640726396.jpg15799741461866115553465565506254.jpg15799741112848776125770648229613.jpg15799740631184954858104609537444.jpg

15799740631184954858104609537444.jpg

M McGra X
New Tab x MyWa x * Cours x b Answerapt x +
ezto.mheducation.com/hm.tpx
Carbex, Inc., produces cutlery sets out of high-quality wood and steel. The company makes a standard cutlery set and a deluxe set and sells them to retail department stores throughout
The standard set sells for $60, and the deluxe set sells for $75. The variable expenses associated with each set are given below.
Production costs
Standard
Deluxe
Sales commissions (15% of sales price)
$15.00
$30.00
$ 9.00
$11.25
The company's fixed expenses each month are:
Advertising
$ 105,000
Depreciation
$ 21,700
Administrative
$ 63,000
Salespersons are paid on a commission basis to encourage them to be aggressive in their sales efforts. Mary Parsons, the financial vice president, watches sales commissions carefully and
that they have risen steadily over the last year. For this reason, she was shocked to find that even though sales have increased, profits for the current month-May-are down substantially f
Sales, in sets, for the last two months are given below:
Standard
Deluxe
Total
April
4,000
2,000
6,000
May
1,000
5,000
6,000
Required:
1-a. Prepare contribution format income statements for April. (Round "Total percent" answers to 1 decimal place (i.e .1234 should be entered as 12.3).
Carbex, Inc.
Contribution Income Statement for April
Standard
Deluxe
Total
6 9 0 12

15799741112848776125770648229613.jpg

Tab
x MyWa x C Login x B MGMT X B McGre X
Assign X
M McGre x New Tab x MyWa x | * Cours x | b Answerapt x +
C ezto.mheducation.com/hm.tpx
X
| :
Required:
1-a. Prepare contribution format income statements for April. (Round "Total percent" answers to 1 decimal place (i.e .1234 should be entered as 12.3).
Carbex, Inc.
Contribution Lisome Statement for April
Standard
Deluxe
Total
Amount
%
Amount
Amount
Sales
%
%
%
Variable expenses:
%
%
%
1%
%
1%
Administrative
%
%
%
Advertising
0
0 %
o
0 %
o
0.0 %
Cost of goods sold
$
0 % $ 0
0 % $ 0
0.0 %
Depreciation
Total fixed expenses
$
M
6 12:42

15799741461866115553465565506254.jpg

ew Tab
X
MyWa X
C Login x & MGMT X B McGra X
Assign X
M McGra x New Tab x MyWa x x Cours x b Answx * Chapt x
C ezto.mheducation.com/hm.tpx
+
X
1-b.Prepare contribution format income statements for May. (Round "Total percent" answers to 1 decimal place (i.e .1234 should be entered as 12.3).
Carbex, Inc.
Contribution Income Statement for May
Standard
Deluxe
Total
Amount
%
Amount
%
Amount
%
%
%
%
Variable expenses:
%
%
%
%
Total variable expenses
0
0 %
0 % 0 0.0 %
$
0 % $ 0
0 % $ 0
0.0%
Fixed expenses:
Total fixed expenses
M
6 0 12

15799741686051900759202640726396.jpg

$
0
3-a. Compute the break-even point in dollar sales for April. (Round intermediate percentage calculations to 1 decimal place.)
Break-even point in dollar sales
3-b. Whether the break-even point would be higher or lower with May's sales mix than with April's sales mix.
Higher
Lower
References
eBook & Resources
Financial Statements
Difficulty 2 Medium
Doing Objective: 06-09 Compute the break-even point for
explain the effects of shifts in the sales mix on contribug

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Let our 24/7 Managerial Accounting tutors help you get unstuck! Ask your first question.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors