Please fill in all of the boxes outlines in yellow! Thank you!! Xcite Equipment
ID: 2465439 • Letter: P
Question
Please fill in all of the boxes outlines in yellow! Thank you!!
Xcite Equipment Co. manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding, that has not been as profitable as planned. Since Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year's plans call for a $340 selling price per 100 yards of XT rope. Its fixed costs for the year are expected to be $421,600, up to a maximum capacity of 550,000 yards of rope. Forecasted variable costs are $204 per 100 yards of XT rope.Explanation / Answer
Per 100 yds
Selling price
340
Variable cost
-204
Answer 1
Contribution margin
136
Answer 1
Contribution margin ratio
40%
136/340
Fixed cost
421600
Answer 1a
Break even point (units)
3100
421600/136
Answer 1b
Break even points (sales in $)
1054000
3100*340
Answer 3
Per 100 yds
Units
Total
Selling price
340
3100
1054000
Variable cost
-204
3100
-632400
Contribution margin
136
3100
421600
Fixed cost
421600
Net income
0
Per 100 yds
Selling price
340
Variable cost
-204
Answer 1
Contribution margin
136
Answer 1
Contribution margin ratio
40%
136/340
Fixed cost
421600
Answer 1a
Break even point (units)
3100
421600/136
Answer 1b
Break even points (sales in $)
1054000
3100*340
Answer 3
Per 100 yds
Units
Total
Selling price
340
3100
1054000
Variable cost
-204
3100
-632400
Contribution margin
136
3100
421600
Fixed cost
421600
Net income
0