A furniture manufacturer specializes in wood tables. The tables sell for $100 per unit and incur $40 per unit in variable costs. The company has $6,000 in fixed costs per month. Expected sales are 200 tables per month. 17. Calculate the margin of safety in units, 18. Determine the degree of operating leverage. Use expected sales. 19. The company begins manufacturing wood chairs to match the tables. Chairs sell for $50 each and have variable costs of $30. The new production process increases fixed costs to $7,000 per month. The expected sales mix is one table for every four chairs. Calculate the breakeven point in units for each product. 17. Calculate the margin of safety in units. Begin by selecting the formula labels and entering the amounts to compute the number of table the company must sell to break even. (Abbreviation used: CM contribution margin. Complete all input fields. For items with a zero value, enter "0") ( ]+[ Required sales in units ( )+ Select the formula labels and then enter the amounts to compute the margin of safety in units. Margin of safety in units K = 18. Determine the degree of operating leverage. Use expected sales. Begin by selecting the formula labels and then entering the amounts to compute the degree of operating leverage: (Round the degree of operating leverage to four decimal places, X.XXXX.) 1. Degree of operating leverage 1=1 19. The company begins manufacturing wood chairs to match the tables. Chairs sell for $50 each and have variable costs of $30. The new production process increases fixed costs to $7,000 per month. The expected sales mix is one table for every four chairs. Calculate the breakeven point in units for each product. First, complete the table below to calculate the weighted-average contribution margin. (Round the weighted-average contribution margin per unit to the nearest cent.) Tables Chairs ( ( = Table Contribution margin Weighted average contribution margin per unit Next, calculate the breakeven point in units for the "package" of products-one table and 4 chairs. Start by selecting the formula and then enter the amounts to compute the breakeven point in units. (Abbreviation used: CM contribution margin. Complete all input fields. For items with a zero value, enter "0". Round the breakeven point-the required sales in units-up to the nearest whole unit. For example, 245.25 would be rounded to 246.) Required sales in units Chairs DE Total )+ )+ Finally, calculate the breakeven point in units for each product. (Round the breakeven point-the required sales in units-up to the nearest whole unit. For example, 245.25 would be rounded to 246.) Breakeven sales of units = W
A furniture manufacturer specializes in wood tables. The tables sell for $100 per unit and incur $40 per unit in variable costs. The company has $6,000 in fixed costs per month. Expected sales are 200 tables per month. 17. Calculate the margin of safety in units, 18. Determine the degree of operating leverage. Use expected sales. 19. The company begins manufacturing wood chairs to match the tables. Chairs sell for $50 each and have variable costs of $30. The new production process increases fixed costs to $7,000 per month. The expected sales mix is one table for every four chairs. Calculate the breakeven point in units for each product. 17. Calculate the margin of safety in units. Begin by selecting the formula labels and entering the amounts to compute the number of table the company must sell to break even. (Abbreviation used: CM contribution margin. Complete all input fields. For items with a zero value, enter "0") ( ]+[ Required sales in units ( )+ Select the formula labels and then enter the amounts to compute the margin of safety in units. Margin of safety in units K = 18. Determine the degree of operating leverage. Use expected sales. Begin by selecting the formula labels and then entering the amounts to compute the degree of operating leverage: (Round the degree of operating leverage to four decimal places, X.XXXX.) 1. Degree of operating leverage 1=1 19. The company begins manufacturing wood chairs to match the tables. Chairs sell for $50 each and have variable costs of $30. The new production process increases fixed costs to $7,000 per month. The expected sales mix is one table for every four chairs. Calculate the breakeven point in units for each product. First, complete the table below to calculate the weighted-average contribution margin. (Round the weighted-average contribution margin per unit to the nearest cent.) Tables Chairs ( ( = Table Contribution margin Weighted average contribution margin per unit Next, calculate the breakeven point in units for the "package" of products-one table and 4 chairs. Start by selecting the formula and then enter the amounts to compute the breakeven point in units. (Abbreviation used: CM contribution margin. Complete all input fields. For items with a zero value, enter "0". Round the breakeven point-the required sales in units-up to the nearest whole unit. For example, 245.25 would be rounded to 246.) Required sales in units Chairs DE Total )+ )+ Finally, calculate the breakeven point in units for each product. (Round the breakeven point-the required sales in units-up to the nearest whole unit. For example, 245.25 would be rounded to 246.) Breakeven sales of units = W
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6EB: Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit...
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Question
![A furniture manufacturer specializes in wood tables. The tables sell for $100 per unit and incur $40 per unit in variable costs. The company has $6,000 in fixed costs per month. Expected sales are 200 tables per month.
17. Calculate the margin of safety in units,
18. Determine the degree of operating leverage. Use expected sales.
19.
The company begins manufacturing wood chairs to match the tables. Chairs sell for $50 each and have variable costs of $30. The new production process increases fixed costs to $7,000 per month. The expected sales mix is one table for every four chairs. Calculate the breakeven point in units for each product.
17. Calculate the margin of safety in units.
Begin by selecting the formula labels and entering the amounts to compute the number of table the company must sell to break even. (Abbreviation used: CM contribution margin. Complete all input fields. For items with a zero value, enter "0".)
(
Required sales in units
]+[
)+
(
Select the formula labels and then enter the amounts to compute the margin of safety in units.
Margin of safety in units
=
18. Determine the degree of operating leverage. Use expected sales.
Begin by selecting the formula labels and then entering the amounts to compute the degree of operating leverage: (Round the degree of operating leverage to four decimal places, X.XXXX.)
Degree of operating leverage
(
=
1-1
19. The company begins manufacturing wood chairs to match the tables. Chairs sell for $50 each and have variable costs of $30. The new production process increases fixed costs to $7,000 per month. The expected sales mix is one table for every four chairs. Calculate the breakeven point in units for each product.
First, complete the table below to calculate the weighted-average contribution margin. (Round the weighted-average contribution margin per unit to the nearest cent.)
Tables
Chairs
(
Contribution margin
Weighted-average contribution margin per unit
Next, calculate the breakeven point in units for the "package" of products-one table and 4 chairs. Start by selecting the formula and then enter the amounts to compute the breakeven point in units. (Abbreviation used: CM contribution margin. Complete all input fields. For items with a zero value, enter "0". Round the
breakeven point-the required sales in units-up to the nearest whole unit. For example, 245.25 would be rounded to 246.)
Required sales in units
Table
Chairs
Total
)+
C
Finally, calculate the breakeven point in units for each product. (Round the breakeven point-the required sales in units-up to the nearest whole unit. For example, 245.25 would be rounded to 246.)
. Breakeven sales of units
.
=
=](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F264c8d26-bec6-4d7b-8ae9-5722f54632ea%2Fa0cc2710-9b7c-4204-82be-681711b09d99%2Fj6qef0b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A furniture manufacturer specializes in wood tables. The tables sell for $100 per unit and incur $40 per unit in variable costs. The company has $6,000 in fixed costs per month. Expected sales are 200 tables per month.
17. Calculate the margin of safety in units,
18. Determine the degree of operating leverage. Use expected sales.
19.
The company begins manufacturing wood chairs to match the tables. Chairs sell for $50 each and have variable costs of $30. The new production process increases fixed costs to $7,000 per month. The expected sales mix is one table for every four chairs. Calculate the breakeven point in units for each product.
17. Calculate the margin of safety in units.
Begin by selecting the formula labels and entering the amounts to compute the number of table the company must sell to break even. (Abbreviation used: CM contribution margin. Complete all input fields. For items with a zero value, enter "0".)
(
Required sales in units
]+[
)+
(
Select the formula labels and then enter the amounts to compute the margin of safety in units.
Margin of safety in units
=
18. Determine the degree of operating leverage. Use expected sales.
Begin by selecting the formula labels and then entering the amounts to compute the degree of operating leverage: (Round the degree of operating leverage to four decimal places, X.XXXX.)
Degree of operating leverage
(
=
1-1
19. The company begins manufacturing wood chairs to match the tables. Chairs sell for $50 each and have variable costs of $30. The new production process increases fixed costs to $7,000 per month. The expected sales mix is one table for every four chairs. Calculate the breakeven point in units for each product.
First, complete the table below to calculate the weighted-average contribution margin. (Round the weighted-average contribution margin per unit to the nearest cent.)
Tables
Chairs
(
Contribution margin
Weighted-average contribution margin per unit
Next, calculate the breakeven point in units for the "package" of products-one table and 4 chairs. Start by selecting the formula and then enter the amounts to compute the breakeven point in units. (Abbreviation used: CM contribution margin. Complete all input fields. For items with a zero value, enter "0". Round the
breakeven point-the required sales in units-up to the nearest whole unit. For example, 245.25 would be rounded to 246.)
Required sales in units
Table
Chairs
Total
)+
C
Finally, calculate the breakeven point in units for each product. (Round the breakeven point-the required sales in units-up to the nearest whole unit. For example, 245.25 would be rounded to 246.)
. Breakeven sales of units
.
=
=
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