Buy Managerial Accounting Homework Question

Buy Managerial Accounting Homework Question
5. value:1.00 points
Chapter 3 Homework instructions | help
Jasmine Park encountered her boss, Rick Gompers, at the pop machine in the lobby. Rick is the vice president of marketing at Down South Lures Corporation. Jasmine was puzzled by some calculations she had been doing, so she asked him:
Jasmine:”Rick, I’m not sure how to go about answering the questions that came up at the meeting with the president yesterday.”
Rick:”What’s the problem?” Jasmine:”The president wanted to know the break even for each of the company’s products, but I am
having trouble figuring them out.” Rick:”I’m sure you can handle it, Jasmine. And, by the way, I need your analysis on my desk tomorrow
morning at 8:00 a.m. sharp so I can look at it before the follow-up meeting at 9:00.”
Down South Lures makes three fishing lures in its manufacturing facility in Alabama. Data concerning these products appear below.
Frog Minnow Worm Normal annual sales volume 96,000 198,000 293,000 Unit selling price $2.20 $1.70 $.70 Variable cost per unit $.90 $1.10 $.50
Total fixed expenses for the entire company are $273,000 per year. All three products are sold in highly competitive markets, so the company is unable to raise its prices without losing unacceptable numbers of customers. The company has no work in process or finished goods inventories due to an extremely effective lean manufacturing system.
Required: 1. What is the company’s overall break-even point in total sales dollars? (Round the CM ratio to 4
decimal places and round your final answer to the nearest whole dollar.)
2. Of the total fixed costs of $273,000, $35,750 could be avoided if the Frog lure product were dropped, $96,000 if the Minnow lure product were dropped, and $40,800 if the Worm lure product were dropped. The remaining fixed expenses of $100,450 consist of common fixed costs such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely.
a. What is the break-even point in units for each product? (Do not round intermediate calculations.)
b. If the company sells exactly the break-even quantity of each product, what will be the overall profit or loss of the company? (Do not round intermediate calculations.)
Break-even point in sales dollars
Frog Minnow Worm Break-even point in units

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Open chat
You can contact our live agent via WhatsApp! Via + 1 3234125597

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 30% with the discount code GIFT